Protect Yourself & Your Family
A sudden interruption to your income due to an extended period of sickness or injury can have serious financial consequences. You may receive group disability benefits through your employer. However, you will need to make sure the benefits available through your group coverage will meet your family’s financial needs if you are unable to work.
Group disability benefits are taxable if your employer pays the premiums, may be capped at a relatively low amount, and may not cover the variable income you rely on such as bonuses or commissions. These limitations mean that group benefits may not be enough to maintain your lifestyle or pay all your bills if you are too sick or injured to work.
Individual Disability Insurance
An individual disability income insurance policy can help supplement your group long-term disability benefits and protect a larger portion of your income. The benefits are generally tax-free as long as you are the premium payor.1 An individual disability income insurance policy purchased on your own is fully portable, meaning you won’t have to worry about losing coverage if you change jobs.
In addition, an individual disability income insurance policy is non-cancelable by the carrier as long as the premiums are paid. With a guaranteed renewable policy, your premiums will never change for the life of the policy.