Disability insurance replaces a portion of your income if you become ill or disabled and cannot work. A typical group plan offered by an employer will replace up to 60% of your salary. Supplemental plans and individual policies may cover up to 70% or 80%. Disability insurance benefits typically last for a set number of years or until you reach retirement age. If you pay the premium out-of-pocket, the benefits are tax free.
Disability policies, coverages and insurance companies vary widely, and it is important to get the advice of a seasoned, qualified, knowledgeable financial professional to help you decide what disability insurance plan is right for you and your family. This is where Schroen Financial comes in.
Group Plans: Many employers offer disability plans with benefits that last for up to five years. But these plans may not meet all of your needs. Many group plans have benefit caps and group plans generally only insure your regular base salary. Some group plans require you to get job training or seek other types of work after a certain period of time.
Individual Plans: Individual disability insurance can supplement what you get from your employer by allowing you to insure an additional 10% to 20% of your income. In some cases, you may even be able to get individual coverage for overtime or bonus income. An individual policy stays with you when you switch jobs and the money you receive is not offset by other benefits, such as Social Security.
Short-term disability insurance - or sick leave - begins as soon as you're unable to work due to an illness, injury or the birth of a child. Most employers in the Louisiana Lake Area, including the refineries, chemical companies, manufacturing, and oil & gas industry companies provide some type of coverage, ranging from just a few days to as much as one year. In some cases, the number of weeks you're eligible for sick leave is based upon how many years you worked at the company. The longer your service, the more paid sick leave you'll get.
Long-term disability insurance takes over once your short-term disability benefits run out. Some Louisiana Lake Area employers provide some level of long-term disability insurance. However, it may be prudent to buy an individual long-term disability plan or to supplement your employer-based insurance. The financial, benefits and disability insurance experts at Stine Financial can help you make the right choices based on your individual situation and how much short-term disability coverage you have.