Disability Insurance Articles
Understanding When Disability Insurance Is Portable To A New Job
2010-07-24
Disability insurance is essential to have for anyone with a full-time position or multiple part-time jobs. If an accident should occur, this type of policy will ensure a significant portion of wages are disbursed during recovery. When looking at the different plans available, it is important to consider insurance portability. This allows the insured to take their coverage from one job to another. There are several methods to do this, and it should be done before opting for any disability insurance quotes that have been quoted.
Group long-term disability insurance is generally provided by the employer. It covers a set percentage of base income, but generally does not cover additional earnings such as bonuses and commission. Employees whose earnings are significantly based off bonuses or commission will need to take out an individual supplemental disability insurance policy. This will provide additional coverage and generally offer insurance portability enabling the flexibility of taking the policy to a new employer.
Finding out whether your insurance is portable is a fairly simple process. Look through your policy's terms and conditions, as it should be stated somewhere in the contract. If there is confusion on legal terms and insurance mumbo jumbo, talk to the insurance provider for more information. Disability insurance quotes are easily obtained via individual companies, and they are able to provide you with their portability policies and their terms and conditions. Simply asking a few questions will make sure that coverage is portable.
Current policies that are restricted to a single location require a supplementary plan that offers coverage between jobs. As a result, a waiting period is unnecessary during the application process if a change in workplace occurs. This period can last several months, which means there is a risk if something goes wrong. For this reason, taking out a supplemental plan which includes insurance portability is a smart decision. Just remember to read the fine print before deciding to take out any sort of coverage.
As with any financial decision, choosing an insurance plan requires thorough research and some patience. By asking the right questions and carefully reading over any contracts, this ensures optimal coverage and protection, no matter the workplace environment. This applies when requesting disability insurance quotes online and from the local insurance dealer. A portable insurance policy will provide peace of mind and convenience no matter what.