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When you start a new job, chances are you will spend time with human resources on your first day getting a full explanation of all your benefits and you will be selecting your options for health insurance, dental insurance, life insurance and disability insurance. While these are all important and require your attention, you should look really carefully at the group disability insurance that your company may offer.
Group disability insurance can cover both long term and short term disability and covers the loss of income should you become ill or injured and are no longer able to work. Some companies pay for part of the policy and require you to pay the rest, or this may be an optional policy that you can elect to participate in or not. Most financial experts agree that if your company offers a group disability insurance plan, you should really take advantage of it. It can save you from financial difficulties should you become ill or injured and are no longer able to work. Group disability insurance plans are really about insuring your income and making sure you can provide for yourself and your family in the event that you become disabled.
When going over a group disability insurance plan, there are important questions to ask and things to look out for. One of the first things to ask is how much coverage do you get. How much income will you receive should you file a disability claim? Most plans offer a percentage of your salary paid on a monthly basis. It’s important to determine how much of a percentage is paid out and if that will be enough to meet your financial needs. While an illness or injury is never planned, a group disability insurance plan can help you plan for the future in the event that you lose your income due to a disability. You should carefully go over your group disability insurance plan to see how much you are covered and if there is a gap in that coverage.
Supposed there is a gap in the coverage and you will need more income per month than what the group disability insurance policy provides. Many companies offer their employees the opportunity to purchase supplemental disability insurance that makes up the difference and covers the gaps left by group disability insurance plan. You can purchase additional coverage with the same carrier through your employer for an additional fee that may be deducted from your paycheck as a pre-tax contribution.
If you discover any gaps in your group disability insurance plan and your company does not offer you the opportunity to buy supplemental insurance, you should contact your financial advisor or an insurance company and purchase supplemental insurance yourself for your own peace of mind.