The Protection and Risk of Group Disability Coverage
Why Disability Insurance?
For many, your most valuable asset isn’t your house, car or retirement account. It’s the ability to make a living. Disability insurance pays a portion of your income if you can’t work for an extended period because of an illness or injury.
More than one in four 20-year-olds will experience a disability for 90 days or more before they reach 67, according to the Social Security Administration.
Statistically, a disability insurance policy is more likely to provide a benefit to you or your family than a life insurance policy.
Group disability insurance through work:
There are advantages to participating in a disability insurance program through your employer, the largest of which may be convenience. Further, for many some coverage is better than no coverage but buyer beware. Unlike life insurance where your current state (dead or alive) is the proxy for benefits, disability insurance has more moving parts.
Group life insurance vs Individual Policies
Disability insurance is a critical coverage, especially for those with many working years ahead. Group insurance coverage is a fine start, but its important to be aware of its limitations and considering a replacement or supplemental policy would be a prudent approach.