You may have a financial plan, but have you thought of what happens if you become fully or partially disabled? Long-term disability insurance provides a needed safety net for anyone who suffers an injury or illness that affects his or her ability to work. Some employers in New Jersey offer group disability plans, but there are also private insurance company offerings as well.
What is long-term disability insurance?
This type of insurance provides you with monthly payments for a predetermined period of time should you suffer an injury or disabling illness that makes you unable to work. Some policies cover you if you cannot work in your chosen profession while others only cover if you are totally unable to work. Similarly, some policies begin paying after 60 or 90 days from the disabling event, and others can take as long as one calendar year before they begin paying. It is important to review your policy and understand what you are purchasing when considering any disability insurance.
Group plans versus individual plans
Policy costs vary by age, occupation, risk factors and other determiners. One way to control costs is to purchase group policies. Many employers provide group disability insurance, and some even cover the cost of the payments for their employees. One benefit of this is that all new employees are eligible without having to undergo underwriting or medical evaluations to qualify.
Many people opt for private disability insurance policies because they have total control of the policy. You can transport the policy with you should you change jobs or even job field, and your employer won’t surprise you by dropping the policy since you retain control. Should you need to file a claim with your insurance company, a consultation with a private disability insurance attorney can prove valuable to protect your interests as the insurance company is doing everything possible to protect its own bottom line.
Regardless of the type of policy that you choose, long-term disability insurance should be a part of your financial plan.