One of the benefits of being hired at a job is what they have to offer the employee. One of these things may be a group disability plan. At first, they may sound like a great option. You may think that a few dollars will be deducted from your paycheck and you will be covered if you can’t work at some point. But, there is a catch and there are four actually, and why you need to have a supplemental disability insurance plan to your group disability plan from your employer.
What You Don’t Know
What people don’t realize or are not informed about is that group disability plans are full of limitations and exclusions. This means that the policy is very picky, per se, about your illness/injury that is not letting you work. So the reason why you can’t work has to exactly fit their guidelines that they laid out for you. If they don’t, they you will probably not be covered like you’d want, especially at such a critical time.
What Does a Supplemental Disability Insurance Plan Do?
This type of insurance plan technically “fills in the holes” of your group disability plan from your employer in order to fully protect you. Without this kind of plan, you will find yourself sick and/or injured, and barely finding out through the insurance company that you are not quite covered and they will not be paying for many things that you need. At this point, you may think why were you paying money all this time to not be covered when you actually need it.
Four Reasons Why You Need a Supplemental Disability Insurance Plan
- Group disability plans lay out what they will pay for and what they won’t, so they are very limiting. Many will only pay for 2 years of you not being able to perform your own occupation (see Disability Insurance Terminology). So what happens if you are sick or injured for more than 2 years? Your group disability plan will not pay anymore. Also, if you can work ANY other job, you will have to take it even though it is not the occupation you used to have. A supplemental disability insurance plan will be there for you past what the group disability plan will.
- As far as mental illnesses and substance abuse, group disability plans pay for only 2 years of that also. Thousands of working people suffer from these conditions and they don’t last for 2 years. Again, your supplemental disability will be there to “fill in the holes” of what your group disability plan is not covering.
- If you are eligible for any Social Security or Worker’s Compensation, your benefits will be reduced by your group disability plan. Your supplemental disability insurance plan will cover you in this situation as well.
- Once you leave your job your group disability plan terminates aka it does not exist anymore. Your supplemental disability insurance plan will be there for you even if you leave your job.
All in all, a supplemental disability insurance policy will help you when your group disability plan from your employer isn’t. Group plans are full of limitations and exclusions and when you are ill or injured you need to be covered and able to pay for bills and expenses.
We Can Help You
Disability Insurance Advisor has agents that can look at your group disability plan and help you customize a supplemental disability plan in order to fully cover you for the future. To get started, fill out our Contact Form or call us at (800) 788-8921. We look forward to hearing from you!