Income protection insurance, commonly know as disability insurance, can come in a variety of forms and be provided by several different sources. In the event that you become unable to perform your job, income protection insurance will continue to pay a portion of your salary (usually between 40 percent to 65 percent), depending on your policy.
Types of Disability Insurance:
The following are some of the most common sources of disability insurance:
- Individual Disability Insurance – These plans are purchased through a private insurance company. They are usually more reliable because you can keep the policy even when you change jobs. If you pay for the policy premiums with money that you have already paid taxes on, then the benefits will be received tax free.
- Employer Disability Coverage – Many employers provide their employees with some type of disability insurance coverage. Short term coverage provides a large portion of an employee’s usual income, but only for about three months. Long term coverage provides a lower amount of income for a longer period of time.
- Social Security – Getting a disability benefit from the federal government through social security can sometimes be difficult. Even those who qualify receive only a small amount of assistance.
- State Disability Coverage – Depending on the state, short term coverage may be provided through the state government. (A good way to find out if your state offers disability coverage is to look at your pay stub to see if money is being taken out for it.)
- Workers’ Compensation – In some states, workers’ compensation provides a portion of income lost due to injury or illness. The injury or illness must be job related.
If you are interested in obtaining private disability insurance coverage, or if you are an employer who wants to offer group coverage to your employees, please get in touch with one of our experts at Assure America today.