Disability insurance is important whether you are an employee or business owner. Disability coverage provides relief in the event that an employee is injured, becomes ill, or is otherwise unable to perform his or her responsibilities of a job. There are many different reasons why an individual would become disabled or unable to perform the required tasks for a specific job including physical injury, medical condition, mental health problems, or other situations.
Many employers are required by law to provide disability insurance for their employees. Even if law does not require it, it is important for every business owner to understand how it can help them as well as their employees.
For individuals, we don’t often consider carrying disability because we assume that our employer or the government will take care of us in the event that we become disabled and are unable to work.
Why Disability Insurance is Crucial
Disability is crucial in order to ensure that the quality of life you enjoy now can be sustained in the event that you to become disabled. There are a variety of different coverages that you can choose from including:
- Individual Disability – For individuals whose employers do not offer disability benefits or for self-employed entrepreneurs who wish to protect against the possibility of becoming disabled, individual coverage is available. The broader the terms or definitions of disability, the higher the premiums will tend to be with these kinds of policies. It’s important to be as clear as possible regarding the definition of disability when applying for a plan.
- High-Limit Disability – If you wish to maintain disability benefits at 65% of your income, regardless of your income level, you may wish to carry high limit coverage. This kind of insurance is generally issued as a supplement to standard coverage.
- Key-Person Disability – For businesses, key person insurance provides coverage for a company against financial hardship that could arise with the loss of a key employee. The loss of the key employee would be in regard to some form of disability rather than termination or resignation.
- Business Overhead Expense Disability – Should the owner of the business experience some form of disability, business overhead expense insurance will provide coverage to help cover rent, utilities, leasing costs, and other business related expenses that would otherwise be covered by the business owner.
There are a number of policies to choose from and deciding which one is right for you or your business is important not only to save you money, but to also ensure that you’re covered properly in the event of a disability. Contact James~Campbell Insurance Brokers to learn more about disability insurance policies.