Disability Insurance Articles

Deciding Whether To Buy Disability Insurance Through An Employer

2011-08-20

Many workers can buy in to an employer disability insurance program as a low-cost way to keep their income protected in the event of an accident. Employer disability insurance programs can be very beneficial and have a few significant benefits as compared to independent disability insurance plans. They tend to be much less expensive, as they're purchased through a pool of workers. Many employers even offer to pay a portion of the disability insurance policy's premiums as a benefit for full-time workers. Employer-sponsored policies are also easy to qualify for, as the same disability insurance protection must be offered to all workers regardless of preexisting conditions. However, there are also a few good reasons to look into buying disability insurance privately, and workers should consider all of their options carefully before signing up to an employer's disability insurance plan.

However, when an employer is only covering part of the cost of disability insurance or when a plan provides unsatisfactory coverage, it may be a good idea to look for a separate independent policy. Evaluating coverage is simple enough, as workers simply need to consider whether the percentage of their income backed by an employer disability insurance program would be sufficient to cover cost of living expenses after an accident. Workers should also consider any elimination period on the disability insurance policy, which is a period of time between when an injury or condition prevents the worker from working and when payouts actually begin. These elimination periods should be kept short enough to ensure that the worker is comfortable and not financially strained when he or she can't work.

If an employer disability insurance plan doesn't provide sufficient protection, a worker can look into buying disability insurance online. It's a good idea to collect a few quotes and to read about disability insurance terms while shopping, as this will make it easier to find a more protective plan. Disability insurance quotes should be compared in terms of coverage and premiums. The ideal policy will have a blend of low costs and ample (but not unnecessary) coverage. After a worker finds a good independent disability insurance policy, he may find it worthwhile to ask his employer to sponsor part of the plan. Some employers will pay for part of an independent disability insurance policy, especially if disability insurance is a stated benefit in the worker's contract. In any case, finding a sufficient disability insurance policy can be an easy process with some research, and workers can easily decide whether to opt in to an employer disability insurance program by viewing a few quotes from major disability insurance providers.