Disability insurance will cover the insured in the event of a total or partial disability. Experts recommend that people insure 60 to 65% of their monthly salary when purchasing disability insurance.
Key things to consider about your current group disability plan:
- Does your current plan cover all sources of income including commissions and bonuses?
- How much does your coverage cost?
- Do rates increase drastically over time?
- Can the policy be cancelled by your employer?
- Does the group plan define a condition of disability more stringently than a stand alone product?
- Who controls the plan?
- Is coverage portable?
- What are the waiting periods before benefits apply?
- Are the benefits taxable?
