It Only Takes a Second . . .
The National Safety Council reported in 2009 that a disabling injury happens every second in America. How would your “rainy day” fund hold out, if you were unable to work for 6 months or longer? Social Security Disability benefits provide some relief to those out of work at least a year. But, it can take months for the benefits to begin paying, and payouts are usually well below pre-disability income amounts.
If you are lucky enough to work for an employer who provides long-term disability coverage, you may still benefit from supplemental coverage provided through an individual policy. Standard group policies will replace up to 60% of your base salary, but generally limit benefit payouts to two years. An individual policy will provide an additional 10-20% of your income. Plus, the coverage continues even if you change jobs.
If you don’t understand how your benefits through your employer work, ask. Some things you may not be aware of:
- Short-term and long-term disability are very different in the amount of time they provide benefits and for what types of disability. The waiting period before benefits begin can also vary greatly from policy to policy.
- The best time to apply for individual coverage is while you are employed. And, you CAN NOT get coverage once you are disabled.
- Disability coverage ends if/when you leave your job (unless you are actually receiving disability payments).
- Similarly, life insurance provided through your place of employment is not always portable. And, even if you are able to take it with you, can be cost-prohibitive to maintain.
The MOST important things to know about disability, and life, insurance is that the best time to apply for it is while you are healthy. The time is now!
Contact us for more information, or to obtain quotes. We are located in Austin and licensed in Texas.