Disability Insurance in Trinton Falls, NJ
Disability insurance is there to help you ease the financial burden when you have an illness, injury or other disability that prevents you from working. Every state has different regulations regarding disability insurance and leave that employers must follow, which means your eligibility for employer-sponsored disability insurance may vary.
In some cases, you may also need to purchase additional disability income insurance to provide adequate protection when an injury, illness or other disability sidelines you from working and earning income.
The team at Two Rivers Benefits Consultants is here to help you navigate the complexities of disability insurance. They can also advise you on whether you should purchase a standalone policy or policies to ensure you have adequate protection. Give us a call today to learn more.
What Are the Types of Disability Insurance?
If you were to incur an injury or illness that made you unable to work, disability insurance covers a portion of your income. There are typically two types of coverage:
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Short-term disability—This disability coverage covers a portion of your salary for a short time. The time frame depends on the individual policy, but it’s typically around three to six months.
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Long-term disability—This coverage covers a portion of your salary for an extended time. This is typically when an employee is disabled and unable to return to work for at least six months.
What to Look for in a Policy
You’ll want to carefully review policy features before purchasing a policy to make sure that it fits your needs. These considerations may include:
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Amount of income replacement—This amount varies by policy, but a policy that pays 50 to 60% of your monthly salary (not including bonuses or commission, if applicable) is common. Check with your employer to see whether they offer a disability policy and whether you should consider purchasing a standalone policy to supplement potential gaps in income.
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Definition of disability—Some policies pay benefits if you are unable to perform the duties of your regular occupation, while others pay only if you can engage in no gainful employment at all. Understanding how a disability is defined will help you to select a policy that best suits your needs.
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Length of benefit period—You can choose to receive benefits that are payable from one year, two years, five years or to retirement age. Opting for coverage that lasts through age 65 affords the best protection against an injury or illness that permanently removes you from the workforce.
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Cost of living adjustment (COLA)—Adding optional COLA to your disability policy means that the coverage you purchase today will keep up with the pace of inflation during the lifetime of the policy.
Get Covered Today
Let the agents at Two Rivers Benefits Consultants help you identify your disability insurance needs and find a policy that’s right for you. Give us a call today to learn more.
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