Primer on Disability Insurance

Over the course of your working career, statistically, you may become disabled at some point before you retire. It is better to be prepared for this possibility rather than face financial ruin if your income evaporates. Recently in the New York Daily News article, the Social Security Administration states that there is a 25% chance that a 20-something year-old will become disabled before he or she retires. This 25% needs to be able to pay for their household expenses while disabled.

Employees need to be aware if their employer is sponsoring disability coverage and whether it’s a long term or short term policy. Another important fact to find out is whether you or the employer pays the premium for this dictates whether the benefits are taxable to you. If the employee pays the premiums on a policy out of their pocket, the benefits will be tax free. If the employer pays the premiums, then the benefits are taxable.

Contact Bonny G. Rafel if you have an employee insurance disability question. We can help!