Though disability is behind a significant number of home foreclosures and personal bankruptcies, insuring against it has not been a high priority for most workers because many assume they’re already covered through Social Security, state-mandated Workers’ Compensation or employer-provided group plans. However, there are numerous holes in this safety net of coverage.
Know that about 45% of those who initially apply for disability benefits through Social Security are initially denied, and those who are approved get an average benefit of just $1,063 monthly—hardly enough to replace the average worker’s income. Workers’ Compensation covers only work-related disabilities, but according to the National Safety Council, 73% of disabling accidents and illnesses aren’t work-related. And what about coverage through work? It’s a great employee benefit, but it’s not available to many workers. According to the U.S. Department of Labor, more than 70% of employers do not offer long-term disability coverage.
What are your options?
If your employer offers disability coverage, take the time to find out if the coverage would be sufficient to meet your income replacement needs in the event of a disabling illness or accident. If it’s insufficient, your employer may offer you the option to increase your disability benefit, often through a voluntary payroll deduction. Another option is to purchase coverage on your own.
If you are an individual or a business interested in learning more about insurance give us a call at: 732.246.1330
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