Disability insurance helps replace income if you are sick or injured and unable to work. Many employers offer this coverage as part of their benefits package. However, it may benefit you to purchase individual disability insurance instead, Here are three reasons to consider it.
1. To Supplement Employer Coverage After an Illness or Injury
If you are unable to work due to illness or injury, your employer-sponsored disability insurance may make up for some of your lost income. Often these policies do not make up the total amount lost, which could leave you facing increasing medical bills without sufficient resources to pay them. You choose the benefit amounts with an individual plan, so you can tailor the policy to meet your needs.
2. To Maintain Protection if You Change Jobs
Another key aspect of an individual disability policy is that it moves with you from job to job. Since the average worker will change employers at least once every five years, that adds an extra layer of protection, consistency and convenience to maintaining comprehensive coverage. It could also help fill gaps while you are fulfilling waiting periods at a new job.
3. For Flexible Coverage Terms
Maybe you are planning to retire soon or are nearing the end of your mortgage payments. In those cases, you may not need long-term disability insurance. With an individual policy, you have the flexibility to choose the term length that fits your lifestyle and current financial situation.
Consider the convenience, portability and flexibility of an individual policy before you settle for employer-sponsored disability coverage.