Having employer based benefits is important. Not all companies have them in today’s world, so if you are someone who’s fortunate enough to receive benefits offered by your employer, count your blessings. However, even if you receive benefits, you may not have sufficient coverage. There are several different scenarios where you can find yourself needing additional coverage.
While employer based benefits are important, it may not be the best idea to fully rely on your employer to provide all of the benefits and coverage you need. What if you were to lose your job? Or maybe your company is having to make some budget cuts, and happen to cut the amount of benefits you receive. One of those benefits is disability insurance. For those that don’t know, disability insurance is a great way for your employer to give you and your family the coverage you need in the event you develop an illness or sustain an injury and are unable to work.
Different coverage options for disability insurance can range from the length of coverage, to the amount of coverage you may need. A short term plan will usually provide coverage for up to two years, while a long term plan should provide coverage from anywhere after two years until retirement age, depending on the plan.
Can’t Work Due to Injury
There are several reasons you should consider disability insurance coverage. One of the main scenarios that would call for an individual disability plan is in the event your employer doesn’t offer a plan. What if you were doing some gardening one weekend and hurt your back? If the injury keeps you from being able to do your job, your company may not be willing to pay your salary while you recover, leaving you without a wage. Having an individual disability plan would provide you with a way to receive a wage in order to pay your bills and support your family.
Employer Stops Benefits
It’s no secret that the past several years have been tough on businesses. The recession forced companies to make some tough decisions. Many people lost their jobs, and many that were fortunate to keep their jobs may have lost some of their benefits due to budget cuts. In the event that your company decides to reduce your benefits, you may be left needing coverage!
Not Enough Coverage
It’s important to know whether your employer offers a short-term or long-term disability insurance plan. If your company offers short-term disability insurance, you may want to think about purchasing a long-term disability insurance plan in case you are unable to work for two or more years. If your company offers long-term disability insurance, you may want to think about purchasing a short-term disability insurance plan to give yourself coverage until the long term coverage kicks in.
It’s also important to note that disability insurance often doesn’t fully match your existing wage. Typically, employer based disability insurance will provide you with 66% of your normal wage, while supplemental disability should cover the remaining percentage. So in order to fully cover your wage amount, you may want to obtain both.
Are you interested in purchasing disability insurance? Would you like some more information regarding options that are available to you? Would you like to ask some questions to an insurance expert? If the answer to any of these questions is yes, please contact us 954-828-1819 or visit us online at mhginsurance.com and talk to one of our insurance specialists for help in selecting disability insurance and other coverage to ensure that you and your loved ones have the protection you need at every stage of life. There are many things to take into consideration when making the decision of which type of policy is best for you, your family, or loved ones. For help trying to figure out which policy is best for you, read our previous blog, “What You Need to Know About Company Sponsored Insurance Benefits”.