How Much Long-Term Disability Insurance Do I Need?
Long-term disability insurance can help to ensure you have a steady income in the event accidental injuries, illnesses, or chronic health conditions keep you from being able to work. Considering the high number of people who suffer disabilities each year, making sure you are covered before you actually need it is a smart financial move.
You may be entitled to benefits through your employer and through the Social Security Administration. However, these policies often pay out less than you might think and you may want additional protection in the form of an individually purchased policy. The following outlines important facts to consider before making this investment.
Reviewing Employer Provided Benefits
According to state profiles from the Centers for Disease Control and Prevention (CDC), close to 30 percent of adults in Florida report living with some type of disability. Considering the likelihood that an injury or illnesses will eventually keep you from working, the question is not so much whether you will ever need long-term disability insurance but instead how much it will take to provide for you and your family.
There are plenty of individually offered long-term disability insurance plans that provide this type of coverage. Before making a purchase though, you want to first do an inventory of any long-term benefits disability benefits you currently have through your employer:
- Request a copy of your policy documents. Under the Employee Retirement Income Security Act of 1974 (ERISA), employers are obligated to comply with this request.
- Review when you are first eligible for benefits. Generally, there are certain employment conditions which must be met first.
- Review the monthly payout amount. Make note of any coverage limits that may apply.
- Look for policy exclusions, which could prevent you from claiming these benefits.
How Much Is Enough Long-Term Disability Coverage?
Once you have a better idea of any long-term disability benefits you may be entitled to through your employer, there are some additional issues you need to consider in determining whether you need more coverage. This includes:
- Review your eligibility for Social Security disability benefits. Under program guidelines, you accumulate credits via your work history, which allows you to receive monthly payments.
- Calculate any investment income you will likely receive. This can help to supplement lost wages.
- Review your living costs and expenses. If your pay large amounts in mortgage and utility costs and have significant outstanding debts, you may need additional long-term disability coverage to meet expenses.
- Inventory other assets you possess, such as savings accounts and property holdings, which could provide a safety net if disabilities occur.
Once you have a better view of your current financial picture, you can better determine whether additional disability benefits are needed.
Let Us Help You Today
When it comes to collecting disability benefits you may be entitled to, Farrell Disability Law is a strong ally to have on your side. Call or contact our Jacksonville long-term disability attorneysand request a consultation in our office today to discuss how we can help you.
