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Long-Term Disability Insurance Helps Protect Your Assets
If you became ill and were forced to miss work for a long period of time, disability insurance could be the only thing standing between you and financial ruin. With no paycheck coming in for months or even years, all of your careful financial planning could easily be in jeopardy. But having the right kind of disability coverage could let you continue along the financial path you have set for yourself.
If you have influence over your company’s benefits, your employees face the same potentially disastrous scenario, so you should consider making disability coverage part of your employee benefit program. Your company probably already has workers compensation insurance, but that covers only work-related injuries or illnesses. What if someone falls off the roof cleaning gutters, wipes out on the ski slope or falls off a bike? You care about your employees, and you want to make sure they will be OK, financially as well as physically. They may even get back to work sooner if they don’t have to worry about paying their bills while they recover.
If you are an employee, you should inquire about your group disability plan and consider individual disability coverage. It’s best to review both options, because not all plans and coverages are created equally. For example, individual disability is portable and can be taken with you when making a career change.
Regarding group disability insurance, finding the right kind of coverage can be challenging. Employers need to look carefully at the makeup of their workforce. For example, if most employees receive significant bonuses in addition to their salary, they may not have enough protection if coverage limits are tied to salary. But if only a few employees get bonuses or make significantly more than the rest, special plans exist that allow highly compensated people to acquire additional insurance over and above the group disability plan. In addition, benefits received from group disability insurance can be either taxable or non-taxable – which can make a big difference if you ever have to collect. Benefits from individual disability insurance are normally non-taxable.
Regardless of whether you are buying group or individual disability coverage, you should choose a reliable insurer. For group plans, if an employee is injured while you are with one carrier and you later change carriers, the disability claim remains with the original carrier. For individuals, once benefits begin, you cannot switch insurance carriers. Therefore, you want to be especially sure that the carrier you choose is reliable and knows the market well.
At The Bensman Group, we focus on a holistic approach to serving our clients. We want to help you assess and manage all of your risks, both personal and professional. For business owners, we understand that your employees are probably your most valuable asset, and we know that for all working people, protecting your income stream is extremely important. We would be happy to meet with you to discuss ways of protecting your assets through disability insurance. For more information on ways we can help, please contact me, or any member of The Bensman Group team, at 847-572-0800 or firstname.lastname@example.org.