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Supplemental Disability Insurance Supplemental disability insurance closes the gaps left by many other types of disability insurance you might already have. Your existing disability coverage may be limited in how quickly benefits begin after you become disabled, your percentage of income replacement, and your ability to qualify for benefits. See how supplemental disability insurance plugs the gaps in:
Pay close attention if you are planning a pregnancy. You have an opportunity to increase your maternity pay, and fill holes in existing coverage.
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Adding to CoverageI already had a policy. But the elimination period was very long, and it did not replace much of my income. I was planning a pregnancy and found a way to fill the gaps.
Supplemental Disability Insurance & State Disability PlansState disability insurance is wonderful - if you have it. Only five states provide coverage: California, Hawaii, New Jersey, New York, and Rhode Island. If you work in one of the 45 other state you have no state coverage. State disability insurance is limited. Each state varies, but they all have a percentage cap ranging from 50% of income replacement to 66%. Each state also has weekly limits ranging from $170 per week, to $946 per week. The benefit period ranges from 6 months to 12 months. Supplemental Short Term Disability Insurance can cover what state disability insurance does not. Supplemental Disability Insurance & Long Term PoliciesSupplemental disability insurance fills holes in the elimination period of long term disability insurance. Long term disability insurance
protects your income up to age 65 should you become disabled. Because
the benefit period is so long, the elimination period often times is
also quite long in order to keep the premium more affordable.
Most disabling events are quite short. You are far more likely to miss 3 to 4 weeks of work, then you are to miss 3 to 4 years. If your long term disability policy has a 3 month elimination period, your 4 week disability will not be covered. Supplemental Short Term Disability Insurance can fill the hole in your elimination period, and provide income protection for the more common shorter disabling events. Supplemental Disability Insurance & Social SecuritySocial Security Disability Insurance (SSDI) is provided by the Federal Government, and funded by your payroll taxes. The SSDI program is intended for permanent disabilities. It is very difficult to qualify for benefits, and you have a 6 month waiting period before benefits begin. You must be disabled for one year or longer, or if your disability will result in death. Supplemental Short Term
Disability Insurance can
provide coverage for temporary disabilities and can cover the time before benefits begin through Social Security. Supplemental Disability Insurance & Workers CompensationWorkers compensation insurance
replaces a portion of your income associated with on the job accidents
and illnesses. If you are injured on the job, your employer may place
you on light duty in order to keep claims history in check. This means
you may have to accept a significant cut in pay.
Supplemental Short Term Disability Insurance replaces a portion of your income for on the job disabilities, and may pay a benefit even if you are only partially disabled. If you are hurt off the job workers compensation will not pay benefits. Supplemental disability insurance will cover your off the job accidents and illnesses. Supplemental Disability Insurance & Group PoliciesYour employer may provide you
with company paid disability benefits, or you may pay into a group plan
yourself at work. These programs are great to have, but they have one
major weakness: if you leave your employer you lose your coverage.
What if you leave your employer and your health history makes it hard to get new coverage. Supplemental Short Term Disability Insurance is portable. That mean you can buy it while healthy through your employer, and if you leave you get to keep the policy - regardless of your health picture at the time. Group disability plans also have benefit caps and/or defined elimination periods. Your level of coverage may not be adequate given your income, or the elimination period may be very long. If you go broke before benefits begin, what value is that to you? Supplemental disability insurance can increase your level of income replacement, and shorten your elimination period. |
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