Why should people invest in private disability insurance?

| Oct 12, 2020 | Supplemental Security Income

While many employers in New Jersey offer disability insurance, some people might want to buy private insurance to supplement their income in the event that they can’t work for long periods of time. Otherwise, they might not be able to pay for their health care and living expenses. Here’s what people should consider when thinking about disability insurance.

Why should people consider buying private disability insurance?

While many employers offer disability insurance, it typically only offers a fraction of the person’s income. As a result, an individual might find themselves draining their life’s savings if they become disabled and can’t work for a long period of time. For that reason, individuals can benefit from buying private disability insurance.

Private disability insurance typically replaces the majority of their income, and it is not taxed, unlike employer-provided insurance. Additionally, private insurance is more flexible and offers more options. This type of insurance is not tied to employment and can stay with a person for their entire life as long as they pay the monthly premiums.

The cost of the plan is typically determined by the person’s age, occupation, job riskiness and duration of the plan. Private disability insurance usually costs no more than 3% of the person’s yearly income.

Where can a person find assistance if their insurance claim is denied?

While private insurance is supposed to help people who can’t work after becoming disabled, some insurance companies might deny their patient’s claims. As a result, patients may be unable to pay their living expenses. When this happens, the patient might wish to contact an attorney.

An attorney may be able to review the situation and figure out if the claim was legitimate. If it was, they might represent their client and work to convince the insurance company to pay out the benefits.