Disability Insurance for Individuals
Individual Short Term Disability Insurance
Individual short term disability insurance plans put you in control of your income. Unlike group coverage, short term disability insurance for individuals allows you to own your policy. Your private coverage and benefits remain intact no matter where you work.
You can get individual coverage in two ways. But be aware that policy features vary, depending upon where you get your policy. The key factors break down as follows:
Individual Short Term Disability Insurance: Pregnancy
Individual short term disability for normal pregnancy can't be found direct. Insurers understand that individual policies covering normal pregnancy and maternity leave are sure money losers. The people buying the policies are planning to use the benefit. So they only sell them through groups in order to pool risks.
Many women look for an individual policy because their employer does not offer it. They discover that finding a personal policy sold direct is like hunting unicorns: neither exists.
But there is hope! You can buy personal temporary disability insurance as a voluntary employee benefit. You pay the premium through convenient payroll deduction, so there is no direct cost to your employer. If you leave your company the policy is portable, and guaranteed renewable. That means no matter where you work or what happens to your health the policy is yours for as long as you continue paying monthly premiums.
Get a Personal Policy at Work
Get your personal temporary disability insurance coverage at work. You begin by paying through a payroll deduction. You will pay the premium via payroll deduction, so there is no direct cost to your employer. Just ask your employer to make this coverage option available to you.
Your personal policy is portable. That means no matter where you work, or what happens to your employment, you can keep the coverage. Just continue to make premium payments on your own. You own the policy. Not your employer.
It's simple and easy to ask your employer. Your employer benefits, your co-workers will thank you, we will protect your privacy, and you'll get a free gift!
Private Short Term Disability: Accidents, Illnesses
Private short term disability insurance that covers accidents and illnesses only is simpler to find. You are buying true insurance coverage: accidents and illnesses that are not planned or expected. Many private short term disability companies offer plans that you can purchase through your local disability insurance broker. Complications of pregnancy will be covered in the same fashion as any other covered sickness.
Individual Versus Group Policies
Finding the right coverage means looking in the right places, and understanding how insurance companies think. Depending upon your needs and personal situation a group policy may work better than individual coverage.
Many women planning a pregnancy find that something in the middle works best. The primary advantage of group policies for insurers is the opportunity to pool risks. The larger the number of individuals insured, the more predictable the loss ratios will be.
Insurance companies also focus heavily on something called adverse selection, which works against many people looking to buy individual coverage directly. Insurance companies know from experience that people looking to buy a policy are more likely to buy than those included in group coverage where a 3rd party pays all or most of the premium. Companies can offer richer benefits to groups than to individuals.
This self-selection phenomenon is most evident with policies covering pregnancy. The women who want to buy the policies plan to use the benefit. Insurance companies don’t find that tradeoff very appealing, so they limit what individual policies will cover. Voluntary individual policies provide the ideal middle ground. They are offered to groups, but issue individual coverage that employees own and pay for themselves. Normal pregnancy is a covered benefit. Get the policy at work, pay by payroll deduction, and keep the policy now matter where you work.