Disability

Disability Insurance Policies

Disability Insurance Policies

Tunnell Insurance

Disability insurance is designed to help protect employees and individuals who are self-employed when they are disabled and cannot work for a short period of time. If you are building a comprehensive individual insurance portfolio, it is important to consider all of the lines of insurance that you will need to protect your finances and your family. Disability products helps to replace a portion of your income when you are out of work due to a covered illness or injury. Continuing reading to learn more about this product to determine if you should add coverage to your portfolio.

What is Disability Cover and How Does it Relate to Workplace Benefits?

There are individual disability plans and employer-sponsored disability plans. Each type of insurance is designed to provide you with income replacement when you are out of work because of an injury or a sickness. If you have an employer-sponsored plan, your employer will pay for a portion of the premiums and you will pay for the remainder out of your pre-taxed earnings.

When you buy an individual plan, it will provide you with supplemental income in addition to your workplace plan or state-sponsored plan, but you must pay the premiums in full with after-tax dollars. Because only a percentage of your income is paid out monthly or weekly, it is acceptable to have an individual and a workplace policy.

Who Needs Individual Disability Cover?

There are two different candidates for an individual disability plan. If you are self-employed and you do not receive any workplace disability benefits, carrying an individual plan that provides you with a large percentage of income replacement is important for your own financial security. If you are an employee and you do not receive these benefits, or you would like to receive as close to 100% of your income as possible, you can buy an individual plan. Remember, you will not be able to claim more than 100% of your income replacement even when you have a supplemental plan.

Disability insurance will provide you with protection during a difficult time in your life. When you do not have to stress about paying the bills, you shorten the period of time that you need to recover. Buy protection and peace of mind by investing in optional disability coverage.