3 Questions You Should Ask About Disability Income Insurance During Your Benefits Enrollment
Electing disability insurance can be one of the most important choices you’ll make during your benefits enrollment. When you choose disability insurance, you are choosing to help protect your income and your family in case you are ever unable to work because of a covered injury or illness.
Walk into your next enrollment prepared with the following questions.
1. How much disability insurance do I need?
When considering how much disability insurance you need, you should consider the amount needed to pay for your financial obligations if you were to lose your income due to a disability. The maximum benefit amount is typically around 60% of the insured’s salary – meaning, if you select the full benefit amount, you could receive up to 60% of your salary for the duration of a qualified disability.
Also, be sure to consider the elimination period or waiting period for a disability policy. This is the amount of time an insured must be disabled before benefits are payable. Because of this, you should consider how long you can go without receiving a disability benefit payment.
Many employers offer a variety of plans. For example, let’s say your employer offers a 90-day plan, a 30-day plan, and a 14-day plan. A 90-day plan means that this policy has a 90-day elimination period. During enrollment, you will choose how long your elimination period will be and the amount you will receive beginning on the day after your elimination period.
Be sure to carefully evaluate your employer’s specific plan offerings before making a decision.
2. What disabilities are covered?
In general, a disability is something that prevents you from working, such as a major injury or illness. Your specific policy will explain how to qualify for benefits, including exclusions and limitations.
3. What is a pre-existing condition?
A pre-existing condition is a condition for which you have received treatment, incurred expense, taken medication, or received services, a diagnosis, or advice from a physician during the period described in the policy immediately before the effective date of coverage.
Before purchasing your policy, you should discuss any concerns or questions you might have about pre-existing conditions with your account manager. They will be able to walk through your policy with you.
Prepare for the Unexpected
We understand that choosing your benefits is a big decision, but it shouldn’t be stressful. Before and during your enrollment, American Fidelity offers educational materials, videos, group meetings, and/or one-on-one benefit reviews to help you understand your options. Because disability insurance has many nuances that can be confusing to understand, we want you to feel confident about your choice to help protect your income.
Related Disability Articles
Here are some FAQs to help you better understand how to complete Third Party Sick Pay reports if you use a third party provider for your disability.
You may understand the importance of disability insurance but you may be asking: Why aren’t more employees taking advantage of it?
There is a strong probability one of your employees will experience a disabling illness or injury. Without disability insurance, how will you help?