Disability insurance is a common benefit for employees, but the default options don’t always provide enough coverage. If you live in New Jersey and you think that the base offerings available to you through work for disability insurance don’t cut it, then you might want to invest in supplemental long-term disability insurance. It may give you more coverage and better benefits.
Why would you want supplemental disability insurance?
There are several different dimensions to disability insurance, and they can all fall short in different ways. For example, disability insurance has a specified length of time that it provides benefits. If you are not happy with the coverage you have, you can get supplemental disability insurance with a longer coverage period.
Another key aspect of disability insurance is that it is tied to your job. If you lose your job, the coverage ends. Additionally, the benefits are taxable if your employer makes any kind of contribution to the policy. Finding your own private long-term disability coverage through a group policy can protect you from that tax burden as well as job-related risk. These are not the only potential ways that job-based insurance for disabilities can fall short. It’s a good idea to look at the policy that you already have and then see what holes it has and how you can fill those holes with a supplemental policy.
The importance of being prepared
It’s not easy to think about the prospect of long-term disability. However, the more you plan for it and think about your insurance, the better prepared you will be in case you actually find yourself in the position of needing that coverage.