• Group plans- these can be paid for by the
employer or the employee. They offer great basic coverage, but may replace only 60% or
less of your income. Self-employed and contract workers may not be eligible for a group
plan.
• A private policy you own personally can be a solution if you don’t have access
to employer benefits, or when those programs do not adequately meet your needs.
Today’s individual policies contain pricing and coverage options that make them
flexible and affordable, no matter what your income. These policies can help you replace
more of your income if you have other coverage.
You may not have focused on the economic
situations that could threaten your lifestyle. The reality is that illness or injury can
keep you from working and earning an income. Statistics show that disability is more
common than you think. Most people are well covered by life insurance, but have not
considered insuring for disability. At any given time in your career, the chance of a
long-term disability occurring – one lasting more than 90 days – is three times
more likely than death. 1
When reviewing your income protection needs,
it’s important to consider whether you already have access to benefits and how much
coverage those benefits would offer you during a disability. It’s a good idea to talk
to an insurance agent or your Human Resource benefits representative at work. If your
benefits will not replace an adequate portion of your pre-disability income, you may want
to consider personal income protection to help close the gap in your financial plan.
1. 1985 Commissioners Individual Disability
Table A.
|
