A long-term disability insurance plan is appealing because it provides financial assistance during a long-term illness or injury.
If you are like some people, obtaining a policy might take a while because of its high costs, different options within various policies, or underlying optimism that you won’t get a disability. Long-term disability insurance is appealing because it provides financial assistance during a long-term illness or injury. Here are a few considerations that can assist you with your decision.
Do You Rely on a Paycheck?
If you are married or have children, you may need a disability insurance plan because others likely depend on your household contribution. The need for disability insurance decreases once you gather enough retirement savings to make due if a disability forces you to retire early. If you have children, the need for a disability insurance plan also decreases once they no longer require your financial support.
What is Your Budget?
Disability plans are available in all shapes and sizes. When you work with The MWE Partnership, we can customize coverage based on your budget. For instance, consider minimizing the monthly benefit amount, shortening the benefit period, removing the cost-of-living adjustments, and so on.
Also, you are better off adding money to your emergency fund than purchasing a short-term policy. Not only is this approach cheaper, but it offers significant flexibility and liquidity. A long-term disability policy takes up where the short-term left off and covers you for years to your whole life.
Don’t Underestimate the Coverage You Need
Suppose your medical expenses increase if your disability forces you to quit your job and terminates your medical insurance coverage. You might need to purchase medical supplies or equipment or renovate your home to accommodate a disability.
Moreover, childcare expenses will likely rise if your children can’t drive themselves. With young children, simply going from two sets of hands to one may need hiring help with the children or other household chores such as cooking, cleaning, etc.
Avoid Assuming Your Employer Plan is Enough
Many employees don’t purchase their disability insurance plans because their employer is the one that pays for coverage. However, these policies only replace a small amount of income and need more duration to protect from the multi-year absence from work. If you pay your policy premiums with after-tax dollars, your benefits will be tax-free. In contrast, premiums paid with pretax dollars, typically through your employer, might cause taxable benefits.
Moreover, your employer plan alone isn’t enough; consider buying your own disability insurance plan, too. You should work with an insurance broker to find a policy with features and pricing that meet your needs. The MWE Partnership has a robust and diverse catalog of individual and group insurance products available to companies of any size. Call us today at 410-394-9617 to ask about our individual or group products!
Get in Your Voluntary, Supplemental, and Health Insurance Policies with the MWE Partnership!
Are you a business looking to provide your employees with essential voluntary benefits? If so, look no further than The MWE Partnership. When you choose The MWE Partnership, you get experienced service and comprehensive voluntary benefit options that will meet all your employees’ needs. With over 17 years of experience, The MWE Partnership is your go-to provider for all your supplemental benefit needs. If you are interested in finding out how The MWE Partnership can help your business, contact us today! We encourage you to like our Facebook page and follow us on Twitter and LinkedIn for the latest voluntary benefit news!