Five essentials of disability coverage
Disability insurance† protects your income if an illness or injury prevents you from working. Whether you're insured on your own or through a benefits plan, here are five essential things to know about your coverage.
Some plans start paying out within 30 days following an injury or illness, while others have a waiting period of six months. If you were to develop a chronic condition with flare-ups, find out if the waiting period would apply each time.
Amount of benefit
Disability policies pay either a set amount or a percentage of your income, often ranging between 40% and 80%. Some plans pay out more initially, and then reduce the amount. Others are indexed to inflation.
If you pay your own premiums in a workplace-sponsored insurance plan, benefits are not taxable. If your employer pays the premiums, however, any income would be taxed.
Definition of disability
The most comprehensive plans cover you if you can no longer work in your own, chosen occupation. Other plans cover you only if you can no longer work in any occupation.
Duration of benefit
Options generally range from two years to age 65, or retirement. Professional advice can guide you through the fundamentals of disability coverage or highlight how a plan can be tailored to your needs.
A BlueShore Financial insurance advisor can work with you to develop a disability insurance solution to meet your needs.