Disability Insurance Articles

Reasons To Have Both Group And Individual Disability Insurance

2010-11-17

Disability insurance provides coverage to people in the event that they are no longer able to work their current job in any capacity. Disability insurance quotes can be purchased based upon your current income and living expenses. Group disability insurance can be obtained from your employer or group organization. Individual disability insurance can be purchased through a private corporation with no bearing on your employer. There are reasons why you would want to have both individual and group disability insurance coverage.

Individual disability insurance is portable. It provides coverage for you whether you are employed, self-employed, or unemployed. As long as payments are made on time you have coverage. Individual disability insurance quotes can provide you with an additional financial benefit that your group disability insurance does not cover. This can be purchased while you are young and healthy to obtain the best rates.

Group disability insurance is normally offered through an employer when you are first hired on a job. If you do not accept coverage you are not given another opportunity to apply. It is important to sign up to not lose this benefit. Because this is offered to the entire company, many times the rates may be cheaper than individual plans. You also cannot be denied coverage on a group disability insurance plan. As you stay with the job your income may increase which may necessitate the need for additional coverage. This can be supplemented with an individual disability insurance policy.

Most disability plans have a waiting period before any benefit is paid. If this is a short term disability most plans will not pay any benefit unless you have that included in your policy. The majority of disability insurance quotes are for long term disabilities that have no chance of recovery. The waiting period for these types can be as small as 30 days and up to 6 months or longer. The longer the waiting period, the cheaper the policy. In order to take advantage of the cheaper rates for the waiting period, you will need adequate savings to cover your expenses while you wait for the disability insurance to take effect.

Disability insurance quotes can be obtained for any waiting period that you choose. Group disability insurance is obtained from your employer based upon current income or salary. They are offered to workers when they begin working. After the salary or income increases this amount may not be sufficient to cover basic living expenses. Individual disability insurance can be purchased to supplement the original coverage amount. It also has the advantage of moving with an individual and not lost when a new job is taken.