* According to
Todd Katz, Vice
President of group
| Unless you're self employed, the first thing you should do is figure out if your
employer provides long-term disability insurance to begin with. About half of mid-
to large-sized firms offer benefits that last for at least five years, according to
America's Health Insurance Plans, an industry lobbyist. But even if you're lucky
enough to have coverage, the plan may not meet all of your financial needs. So be
prepared to take a good, hard look at what you've got.
The typical group plan covers up to 60% of one's income. (This is offset by
any other benefits you may receive from social security or worker's comp.) But
the amount may actually be far less than that. That's because most group plans
have a benefit cap of, say, $5,000 a month or $60,000 a year.* Another surprise
for many is that bonuses don't usually make it into the equation. A group plan will
only insure your regular salary.
Another shortcoming: Most group policies limit the amount of time it will pay
benefits to just two years if you can't perform your job duties. After that, you'll
need to prove you can't hold down any job. Not only does this keep costs down
for your employer, but the idea is that you can get new job training during those
initial two years that you receive benefits.*
|As with any type of coverage -
it's important to know what you have,
and most importantly - what's not covered!
Need some help figuring out potential shortfalls in
your disability coverage?
Contact us for assistance.