Any form of injury sustained at work or otherwise can hugely impact the income stream of a household; issues can be greatly compounded if an individual is the only earning member of his family. Such an occurrence can put an employee out of action for a considerable period of time, jeopardizing the familyís financial stability and future. While most employers offer some of disability insurance, these polices seldom provide more than 50% to 60% of the income, creating a very real and urgent need for supplemental disability insurance.
What is Supplemental Disability Insurance?
As the name suggests, this form of coverage can come to the rescue of an individual who has sustained injuries that prevent him from performing his normal work related duties and have impacted his earning abilities. A supplemental disability policy works in combination with regular, mandatory coverage provided by the employer and helps to fill the gaps in the features of employer and state provided disability insurance. Most forms of supplemental disability insurance offer up to but not limited to 70% of the income. This form of coverage is often recommended by experts who liken it to an emergency fund.
Supplemental Disability Insurance Premiums
There are several variables which will have a direct bearing on supplemental disability insurance premiums. For instance, the point at which the insurer elects to receive his benefits under such a policy can make a significant difference to the rate of coverage. Insurers are given a set number of days at which point the insurance company starts to pay regular benefits for a period of 6 to 8 months; this can range from 10 to 90 days or more after the debilitating accident, depending on the insurance provider in question. Normally, a person pays more if he chooses to get his benefits immediately after the accident.
Buying Supplemental Disability Insurance
The first thing to consider before buying supplemental disability policy is the provision for disability provided with the employee benefits package. Ideally, it would be best to talk to the HR team to understand what is covered, the percentage of income that the employee will receive in case of disability and the time for which he/she may be covered. A supplemental policy should definitely be considered if the benefits package offers anything less than 60 to 70 percent of the salary along with coverage for treatment of disabilities. This is particularly important for employees who work in high risk sectors.
How to Get Affordable Supplemental Disability Insurance?
One of the best ways to shop for supplemental disability policy is to compare quotes from various providers through an online third party quote comparison site. Ideally, a person interested in such a policy should look at the products from at least 5 to 9 insurance companies, comparing the various benefits as well as the providerís reputation for customer service and claims payment before making a purchasing decision. With the right supplemental disability policy, it is possible to turn a bad or mediocre benefits package offered by an employer into adequate protection.
Supplemental disability coverage works best when an individual keeps aside an emergency fund that can be tapped into for a period of a few months while the disability coverage takes care of day to day expenses. It is imperative to understand that in many cases a few months of benefits may not be enough to cover for some forms of disabilities, in such a scenario, other options should be explored.