Disability insurance is a crucial safety net for many workers in New Jersey. It can provide some peace of mind in case of an unexpected illness or injury. However, there may be a false sense of security among workers with disability insurance through their employer. Employer-provided disability insurance may not be enough to cover all your needs if you become disabled. However, there is still hope for securing disability insurance that meets your needs and expectations.
Understand your employer’s disability insurance limits
Find out how much income your employer-provided disability insurance will provide and for how long. Also, determine whether there are any limitations on who may receive payments and what type of medical care your insurer covers.
Assess your current financial situation
Knowing how much money you have saved or invested can help you decide how much disability insurance you need. If you have limited income, consider whether or not you can support yourself and any dependents should you become disabled and unable to work.
Calculate your necessary expenses
You’ll want to account for all of your necessary expenses if you can no longer work due to a disability. These include everyday living expenses such as housing, food, medical care, transportation, childcare and more. It’s important to factor in long-term expenses, too – such as college tuition for children or costs associated with retirement.
Research private insurance options
Private disability insurance policies may be available if employer-provided coverage is insufficient or unavailable. These policies typically offer long-term benefits and are more tailored to your needs. Research different insurance providers and make sure you understand the terms and conditions of each policy before signing up for one.
Disability insurance is an essential part of your financial planning, but it’s vital to ensure you have enough coverage should the unexpected occur. Consider your age, state of your health, yearly income, beneficiaries and necessary expenses to determine the amount of disability insurance coverage that’s right for you. With some research, you can ensure that your workplace disability insurance is enough and give yourself peace of mind for the future.
