Protect Your Most Valuable Asset - Your Income
You probably already insure valued assets like your home and your car but what about your income? Do you have any insurance that is designed to help you offset any loss of income after a disabling accident or illness?
Two Basic Types of Disability Insurance
- Group disability insurance is obtained through an employer or membership in an organization
- Private disability insurance also known as individual disability insurance is insurance purchased on your own
Advantages of Group Disability
Group disability insurance is typically less expensive than private or individual plans. It's a good idea to look at your employer's plan and decide if it is enough coverage for you. Some employer plans allow you to purchase additional coverage at your own cost but they are often very reasonably priced add-ons. It's a great deal to take advantage of if it's available.
Advantages of Private Disability
If you opt for a private or individual policy be prepared to pay more but there are advantages to private disability policies.
- The policy is yours and remains in force as long as you pay the premium. With group policies, which are tied to your current job, if you leave employment you may or may not be able to take the disability insurance with you.
- Private disability insurance is most often written with a coverage called "own-occupation". It's more expensive but well worth it at the time of claim. It pays if you are unable to perform the occupational duties that you have been trained and educated to perform. Any-occupation is more common and less expensive but more restrictive at claim time.
- Benefits received from a private disability policy are tax-free as long as you've paid the insurance premiums with after-tax money.
Taking the step and purchasing disability insurance could be the difference between a secure future for you and your family and a devastating financial burden. There are many coverage options when it comes to private disability insurance. The internet can be a great source of information for research but we recommend working with an independent agent at the time of purchase. An agent can explain the coverage options and guide you to purchase the best protection for you.