Disability insurance provides income replacement in the event that an insured becomes disabled. Disability insurance includes a variety of different benefits to best meet the needs of sick or injured individuals. Most plans include paid sick leave, short-term disability benefits and long-term disability benefits. The following five reasons explain the importance and benefit of disability insurance:
1. Incomplete employer coverage – While most employers provide disability insurance, the average plan only covers 60% of an employee’s salary and caps benefits between $5,000 and $10,000. These figures typically fall well below the 60% income mark and leave individuals in need of additional income. An additional individual disability plan will supplement employer coverage to provide the disability income level necessary by the insured.
2. Unfortunately, the risk of disability is high – A 30 year-old man has a one in five chance of suffering a long-term disability in his lifetime while a woman of the same age has a one in three chance.
3. Long-term disability coverage is crucial – Most employer plans only cover short-term disability, which means if an individual’s disability extends even one day beyond the benefit period, he or she will be responsible for all of the costs.
4. An individually controlled elimination period is helpful – The elimination period is the time between the onset of disability and the beginning of payments. An employer plan determines this period while an individual plan allows the individual to establish this period.
5. Lifetime benefits or retirement protection – An individual plan can be arranged to offer lifetime benefits or to supplement a retirement plan whereas most employer plans don’t offer this benefit.
If you become disabled, God forbid, standard-unemployment benefits will likely not provide what it takes to replace your income. Disability insurance gives you the ultimate safeguard. Cosmo Insurance Agency in New Jersey will shop for the ideal plan, from the superior carrier, based on your individual situation.
Short term disability insurance provides you with most of your previous income level for up to two years. Long term disability insurance provides this coverage for several years, up to retirement, depending on the plan you choose.
Cosmo Insurance Agency is an independent insurance agency serving surrounding communities in New Jersey. Cosmo keeps its promise to assure an efficient and creative approach to the services we offer. Each of our clients experience a personalized and long-term relationship with us. Our New Jersey based team of health brokers guides our clients in helping them choose the most cost-effective options. By incorporating the latest in technology-based tools and laws on healthcare, employee benefits, life insurance and finance, we keep our clients up-to-date with the plans that encompass all of their needs, whether it is individual or group insurance.
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