According to the National Institute on Disability, Independent Living, and Rehabilitation Research, almost 12% of the population in 2016 was living with a disability. While many Americans rely on their group disability plan, what happens if you lose your job? What if you own your business? If you cannot continue to work due to disability, you may face a period without income and even lose your home or business.
There are two types of disability coverage: short-term and long-term disability. The amount the policies pay after you face a covered disability varies depending on your base salary. Contingent on the policy definitions, any bonus or commission you receive may not count toward your coverage payout. Short-term disability begins to pay sooner than long-term but ends relatively quickly, depending on the policy you choose.
Long-term disability generally begins to pay when you face a longer recovery from illness or accident, often three to six months post-disability.
Many employers offer full-time employees both group short-term and group long-term disability coverage. However, group insurance is not “portable,” nor do groups usually offer better benefits than individual policies.
If you lose work hours, for example, and drop from a full-time to a part-time employee, you may lose your coverage. If you face a layoff or change jobs to a smaller organization that does not offer group coverage, you can lose access to group disability coverage.
If you own a business, disability coverage is critical. Keeping your business viable and paying monthly bills like rents, payroll, and mortgages can be impossible if you are unable to work. An individual disability plan allows you to meet the challenges of business ownership.
Insurance companies underwrite individual disability policies based on your health and age. We are happy to review your needs and provide a no-obligation quote. Simply contact our office to determine the income you need to replace your salary and cover your fixed expenses.