|  | Disability Insurance
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Will Your Employer's Disability Coverage Protect You When You Need It? |
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Being unable to work due to medical reasons is one of the greatest financial threats a wage earner can face. Every employee needs to know what types of disability protection and what insurance programs are available to ensure the proper coverage is available when it's needed.
Employer-Sponsored Group Disability Plans
Group disability insurance typically covers 60% of base salary to a maximum monthly benefit of $5,000 to $10,000. If your company pays the premium for the plan, any benefits paid to you are taxable, reducing your income to just 45% of your regular earnings.
Hence the need for Supplemental Disability Insurance. This type of policy can increase your replacement income (benefits received from a policy that you pay for are not taxable) while providing more liberal definitions within the policy.
Supplemental Disability Coverage
A Supplemental Disability Insurance plan will have a more comprehensive definition of total disability, a significantly better residual disability rider, and inflation protection.
Supplemental disability coverage becomes more expensive as we age but its coverage is in effect regardless of who you work for and, since you are paying for the policy, all benefits received are tax-free!
In addition, supplemental disability coverage becomes more difficult to qualify for as we age. It is a mistake to think that you will always be insurable. This type of insurance is not always easy to get.
Even if you are perfectly healthy now, there is no guarantee that you will be a year from now. You could develop back problems, diabetes, or some other condition that prevents you from getting a policy. Purchasing a supplemental disability insurance policy can guarantee you the ability to always have income protection no matter how much money you earn, what company you work for, or what medical condition you develop in the future.
Read the Fine Print!!
Many group disability insurance plans have very restrictive definitions that define when an employee gets paid for a claim. Typically a group disability policy has a limited partial disability benefit, and generally offers no inflation protection.
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Group Disability Coverage |
Supplemental Disability Coverage |
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Premiums can increase |
Premiums are level and guaranteed to age 65 |
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Coverage can be cancelled |
Coverange is non-cancellable, guaranteed renewable to age 65 |
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Coverage ends when you leave your job |
Coverage stays with you regardless of where you work |
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Coverage is the same for everyone in the group, regardless of personal circumstances |
Coverage can be individually customized |
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Pays only if you are unable to work any job |
Pays if unable to work at your own occupation, even if able to work in another capacity |
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Benefits may be reduced is receiving other income |
Total disability benefits will not be reduced if receiving other income
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At Insure Your Future, We Can Help
The experts at Insure Your Future can provide a professional, detailed analysis of your group disability coverage and identify your financial exposure in the event you're not able to work.
We can recommend affordable, cost-effective options from the nation's leading disability insurance companies to cover you should you ever need disability benefits.
Request a free Supplemental Disability Insurance quote online today or give us a call at 800.788.8921 to discuss options.
| 800.788.8921 | |  |
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Chicago Office
1002B N. Milwaukee Ave.
Libertyville, Illinois 60048
800.788.8921 (Map) |
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Maryland / D.C. Office
10533 Prairie Landing Terrace
North Potomac, Maryland 20878
301.294.0641 (Map) |
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