Why disability insurance matters
A serious injury or illness can interrupt income while regular bills continue. Mortgage or rent, groceries, car payments, student loans, childcare, and business expenses may still need to be paid even if you cannot work for a period of time.
Long-term disability coverage is meant to provide income replacement when you meet the policy definition of disability. Benefits, waiting periods, taxable status, duration, and definitions vary, so a careful review is important.
Workplace coverage may not be enough
Many people assume their group benefits solve the problem, but group plans can have limits. Coverage may be tied to your job, may not include bonuses or self-employment income, may have offsets, and may not continue if you leave the employer. If you have group coverage, it is worth reading the benefit booklet rather than relying on a summary.
Questions to ask
- How long could you pay bills without income?
- Do you know the waiting period before benefits start?
- How does your plan define disability?
- Are benefits taxable or non-taxable in your situation?
- Would coverage continue if you changed jobs or became self-employed?
How FinVisor helps
Azadeh can help compare individual disability coverage with any existing group plan, identify gaps, and explain tradeoffs such as waiting periods, benefit periods, occupation class, optional riders, and budget.