How Can Personal Injury Law Protect You?
You might be wondering what disability insurance is, and if it something that you should consider carrying. Disability insurance will replace part of your income if you suddenly become ill or are injured, and find that you are unable to work.
When we are young, it is hard to imagine that you could suddenly become sick, or hurt, and need to take an extended time off of work. But the fact of the matter is, no one knows exactly what the future holds for them.
If you have access, through a group plan at work, you should take your employer up on their disability insurance. Although, something to remember is that most companies only offer short-term disability insurance, with few offering long-term coverage also. While this is a great place to start, you may find that you are in need of more coverage.
You will find that most of the group plans out there only cover a percentage of your income, which is usually around 50-60%. They also only offer benefits while you are with the company, and the benefits that they do provide are generally subject to being taxed.
While it’s a great thing that your employer is offering a group plan, you might find that you need to supplement your coverage with a private plan that includes long-term disability coverage.
It is important to understand how disability coverage works if you will have to utilize it. An individual coverage of long-term disability will help cover the gap that your group plan through your employer provides. In the event that you become disabled while you are working and need to use your coverage, there are two big things that your individual play would help with.
The first thing is that it provides you with is the ability to maintain your current standard of living. If you are only covered for 50-60% of your pay through your employer, then by supplementing with private coverage would allow you to do still all the things that you were already doing, such as maintaining your gym membership. Also, if you pay your policy premiums with your after-tax dollars than the benefits that are paid out to you are income tax-free.
The second thing to know is that it can help minimize the impact on your long-term financial security.
If you have a policy that covers more than what your employer offers, you will be less likely to have to tap into your savings, or even your retirement fund, to be able to cover your bills while you are disabled.
And finally, having an individual policy covers you the entire time you hold the policy throughout your working years, not just while you are working for a particular company. It moves and grows with you.
We never know what the future holds, and making sure that we are prepared is crucial. Do proper research on the company that you want to go with, and be confident that you are making the right choice with your long-term disability coverage.