No one wants to imagine the scenario of what would happen if one day they weren’t able to support themselves or their family due to illness or injury. Having adequate disability coverage ensures that even in a worst-case situation where you are unable to work, your family will be provided for.
The problem with group coverage through an employer is oftentimes the coverage offered is limited or even nonexistent. Any change in your company’s policies or your employer deciding to turn down your request can negatively affect your financial future.
A private disability policy is usually more expensive than a group policy, but this is due to the fact that it has more coverage benefits. You’ll be paid a certain percentage of your income so you’re able to pay your bills while you’re disabled. The cheaper the group policy plan, the lesser benefits there are, so this is a case where you truly get what you pay for. Also, group benefit income is often taxable, whereas individual long-term disability insurance is often tax free.
“Based on statistics from the Social Security Administration, three out of every 10 individuals will end up becoming disabled at one point in time or another. Workers frequently encounter disabilities….When it comes to SSDI benefits, they only last for the short-term, which is why many people want something more. Since the payout on SSDI claims is significantly less, employees prefer to look into something that can protect them for the long-term. Beyond regular SSDI benefits, it is imperative that you have something more as a precautionary measure to help protect your future.” (Disability Insurance.org)
Even if you’re enrolled in a group plan through your employer, you can still purchase an individual disability policy to supplement the group plan. It’s always best to speak with an insurance specialist to help you decide which plan might be right for you.
Consider this: “Foreclosures are 3 to 4 times higher due to disability than to death.” (Life Health Pro) Protect yourself today.