What you should know about disability coverage

March 08 2018


According to the U.S. Census Bureau, an employee has a one in five chance of becoming disabled during their career. That's why experts say purchasing a disability insurance plan is a must for anyone who relies on a job to provide their income.

Here's a quick look at what you should know about the various plans available.

Q: Which disability insurance plans do employers usually provide?
A: Typically, workplaces offer two plans: short-term disability and long-term disability insurance.

Q: What are the differences between these two?
A: Short-term disability provides a percentage of your salary for a limited period of time (most commonly up to 26 weeks) once you've used all your sick leave. After that, long-term disability kicks in and ensures you're receiving a portion of your wages even if you're still unable to work due to sickness or injury.

Q: When is a good time to purchase disability insurance?
A: It's a good idea to purchase a protective plan as soon as you start making a substantial salary -- especially since the policy's benefits are based on your income. Also, the younger you are when you purchase disability insurance, the lower your premiums will likely be.

Q: Should you purchase your own disability insurance in addition to what your employer offers?
A: Buying your own plan independently means you'll be able to keep it if you leave your job and you won't have to start a new policy at an older age. Also, benefits from a personal plan are usually tax-free.

Still have questions? Feel free to reach out!

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