Disability Insurance
Disability Insurance goes to work for you when you can't.
If one becomes disabled, standard-unemployment benefits will likely not provide what it takes to replace your income. Disability insurance gives you the ultimate safeguard and peace of mind. Cosmo Insurance will help you search for the ideal plan from a superior insurance carrier, based on your individual situation.
Short and Long Term Disability Insurance
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.
Disability Income Insurance Benefits:
1. Protects Your Income
Without a steady income, you won’t have the ability to support yourself, your family, or any future plans you may have. Disability insurance can help you retain a percentage of your income to ensure you won’t lose your primary means of support.
2. Protects Your Retirement Funds
Individual disability income insurance will make sure you don’t have to spend your retirement savings to provide income if you are unable to work due to age-related issues. It can also help you continue to add to your retirement fund, even while you are unable to work due to a disability.
3. Prepares You For the Future
When purchasing an individual disability income insurance policy, you can create a custom-made plan that helps you plan for what the future may bring. (Ex: You can choose to allow your coverage to increase as your salary grows.)
A completely disabled employee that is part of a group disability insurance policy will be allowed up to 60% of the total income they received before they were disabled. The policy also has a maximum benefit cap. (Ex: $10,000/month).
Group Plan Advantages:
- Customizable – A group plan can be tailored to the budget and needs of each company.
- More Affordable – Group plans generally have lower premiums than individual plans.
- Flexibility – Although each plan is different, there is a possibility that employees can continue receiving coverage under the plan even after they leave the company.
- Tax-Deductible – Premiums paid for group business plans are considered business tax deductions.
- Attracts and Retains Employees – A group disability insurance plan can act as a great incentive to attract and retain top talent.
Individual Insurance
There are definite advantages to opting in to your employer’s plan, including the fact that it’s usually cheaper, and that it’s easier to enroll and manage because the premiums are taken straight from payroll. There are some disadvantages as well, the main one being that it only covers a certain percentage of your overall salary, usually between 50-60%. A group plan is also much harder to tailor to your individual needs, and it usually ends when your employment does, leaving you with the possibility of no coverage.
Group Insurance
A completely disabled employee that is part of a group disability insurance policy will be allowed up to 60% of the total income they received before they were disabled. The policy also has a maximum benefit cap. (Ex: $10,000/month).
Group Plan Advantages:
- Customizable – A group plan can be tailored to the budget and needs of each company.
- More affordable – Group plans generally have lower premiums than individual plans.
- Flexibility – Although each plan is different, there is a possibility that employees can continue receiving coverage under the plan even after they leave the company.
- Tax-Deductible – Premiums paid for group business plans are considered business tax deductions.
- Attracts and Retains Employees – A group disability insurance plan can act as a great incentive to attract and retain top talent.
At Cosmo, we can provide you with the peace of mind you need, knowing you are covered and ready for any eventuality.
DIsability Insurance FAQS
The answer to that depends on the plan chosen by your employer. According to certain policies, the definition of disabled is when you are unable to do your job or occupation because of illness or inadvertent injury. Other policies define disabled as being unable to perform your job or occupation, but take into account your education, years of experience, and job training. Other policies only consider you disabled if your illness or injury prevents you from earning a significant amount of your salary. There are some plans that don’t include certain pre-existing medical conditions or specific types of disabilities in your coverage. To ensure you are fully covered should the need arise, contact your Cosmo benefits administrator.
Because although there is a portion of your social security income that goes toward paying for disability insurance, it can be very difficult to actually claim those benefits.
The reason for that is, is because the SSA (Social Security Administration)’s definition of what is considered disabled is very limiting. To find out the exact qualifications you need to claim your social security disability benefits, visit the social security website. https://www.ssa.gov/disability/
There are definite advantages to opting in to your employer’s plan, including the fact that it’s usually cheaper, and that it’s easier to enroll and manage because the premiums are taken straight from payroll. There are some disadvantages as well, the main one being that it only covers a certain percentage of your overall salary, usually between 50-60%. A group plan is also much harder to tailor to your individual needs, and it usually ends when your employment does, leaving you with the possibility of no coverage.
