It is important for everyone to understand what benefits there are in the event they become disabled.
Employer Provided Long Term Disability Coverage: Variable Information for Each Employer
* Elimination Period: 30, 60, 90 Day Elimination Period
* Percent of coverage: 60% of Base Salary Only, Base Salary + Bonuses, Commission Only, Commissio
* Benefit Period: 5 year, to age 65, Social Security Normal Retirement Age
* Taxable consequences: Benefits are taxable, Benefits are non-taxable
Reasons to enhance your employer provided group long term disability plan:
* Enhacing your group long term disablity policy with a supplemtental policy can provide the proper
* Supplemental benefits will provide protection should you change jobs
* As you age the probability of your insurability changing increases. Getting a policy while you are he
* Once you become disabled all of your company benefits stop. So, you now have to pay 100% of all
* Even though you may have adequate savings no one wants to draw on it to early in life as it can set
How are cost rates for a disability plan determined?
* Demographics: date of birth, gender, tobacco useage, health status, amount of coverage
How is the disability benefit determined?
* It is based on your income and generally you can purchase up to 70% of your pre-disabilty income
Additional coverages that can be added:
* Cost of living adjustment (COLA)
* Future income increases
* Retirement plan contributions
How do disability benefits work?
* As a disability occurs, you must be disabled for certain period of time (elimination period), before b
* Benefit payments are based on the amount of coverage purchased