Some companies provide employees the opportunity to purchase group disability insurance. If you can do so at a discounted rate, it is well worth considering.
On the flipside, there are employers that don’t offer this benefit. This leaves you in a tricky position. Should you purchase private disability insurance? Should you forget about this altogether?
Before you do anything, learn more about the benefits of buying a policy. Here are three that you can’t afford to overlook:
1. The policy is not tied to your employment. With group disability insurance, your policy goes away if you leave the company. The same cannot be said about an individual policy. As long as you pay your premium in full and on time, this coverage will follow you everywhere you go.
2. Income if you are unable to work. Just the same as a group policy, private disability insurance will provide income if you are injured or ill and unable to complete your job responsibilities as expected.
3. Benefits are tax-free. As long as you pay the premium with after-tax money, you will not be taxed on the benefits you receive from your insurance company.
Now that you understand the primary benefits of private disability insurance, there is a question you need to answer: how can you purchase a policy?
This starts with comparing a minimum of three quotes. By doing this, you can learn more about providers, benefits, payouts, and premiums, among other details.
Whether or not you purchase private disability insurance is your decision. Even if you receive coverage through your employer, you may still want to consider this type of policy.
What are your thoughts on disability insurance?