Many of our California readers look at their home as their biggest asset, however, they are overlooking the fact that their health is more important. Without the ability to work, you are unable to earn the money necessary to support yourself and your family.
In the event of a disability, it is important to be able to collect insurance until you are back on your feet. This comes in many forms, including both individual and group insurance policies.
Many employers understand the benefits of group disability insurance, which is why they provide this to employees, or at the very least make it more affordable to purchase a policy.
Individual disability insurance is also an option, which gives people the ability to purchase a policy on their own. This can be more expensive than buying through a group policy, but if your employer does not offer that option it is often the best way to go. Since many group policies have a monthly maximum benefit, it can be important to purchase an individual policy to supplement your group payout should you be unable to work.
When shopping for individual disability insurance, it is important to take into consideration the financial strength of the companies offering the policies, the benefit period, and inflation protection among other details.
Upon purchasing an individual or group policy it is important to know what is and is not covered. Those who don’t know the finer details of their policy may find their claim being denied for some reason, putting them in a more difficult financial position.
Source: The Valley Business Journal, “The Individual Need for Disability Insurance” Julie Ngo, Jun. 02, 2014