Your employer may offer group long-term disability insurance, but is that coverage enough to protect your finances if you face a serious injury or illness? Show
Your ability to earn income is often your greatest financial asset. But becoming disabled in some way can jeopardize this asset. Without a stable source of income, your best-laid plans — education savings, mortgage payments, retirement goals — can fall like dominos. If you can’t work due to a health issue, long-term disability insurance can provide a source of income. Do you need long-term disability insurance?
Still, many of us tend to forego disability insurance. If you’re relatively young and don’t have a history of health problems, disability insurance might seem unnecessary. But consider the following:
What is disability insurance?
This is where you might have questions. What qualifies as a “disability”? How much does a plan cost? How much income will it provide in case of injury? The answer is: it depends on the plan.
Is employer long-term disability insurance enough?
However, just 35% of U.S. employees in private industry have access to employer-sponsored disability insurance coverage.2 And, even if you do have access it, keep the following in mind:
Individual long-term disability insurance
In terms of cost, you can expect to pay 1 to 3% of your annual salary for an individual policy.6 However, your premium is determined by several factors, including:
Considering long-term disability insurance?
Learn more about insurance options from U.S. Bancorp Investment. How long is your job protected while on disability in California?As a California employment lawyer can explain, both federal and state law govern medical leave. Under the Family and Medical Leave Act (FMLA), eligible employees can take up to twelve (12) weeks of leave in a twelve (12) month period for family and medical reasons. During this time, the employee's job is protected.
How much does long term disability pay in California?It is estimated as 60 to 70 percent of the wages you earned 5 to 18 months before your claim start date and up to the maximum WBA. Note: Your claim start date is the date your disability begins.
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