Employer-Paid Disability Insurance

Many people insure many of their possessions but few insure their income. If a disability does strike, it could jeopardize your financial security. Many employers offer group disability insurance to their employees. In most states this is a legal requirement.

• The income provided by disability insurance plans usually max out at 60 percent of your regular salary. It does not include bonuses.
• It's important to understand your employer's disability insurance plan. Some plans have a limit to the amount of income you can receive in a month. For employer disability plans it is usually $5000 a month maximum.
• You should also know how long the benefits are paid out. Generally two years is the maximum length of time you can receive disability on employer plans.

For many people, 60 percent of their regular income is not enough to support themselves or their family. A supplemental disability policy can augment the amount of income you receive while on disability. To get disability insurance quotes fill out the form on InsuranceBureau.com.

Sources

1. Do You Need Disability Insurance?, Stacey L. Bradford. (2005). Retrieved April 24, 2008, from http://www.smartmoney.com/insurance/disability/index.cfm?story=disability2005
2. How can I insure against loss of income? Retrieved April 24, 2008, from http://www.iii.org/individuals/disability/lossofincome/