The Fundamentals of California Disability Insurance

If you’re unable to work because of an illness or injury and you’re worried about not being able to pay your bills…don’t stress out!  Our California Disability Insurance can help you pay your bills while you recover and give you the peace of mind to know that you’re covered.

Here are The Fundamentals of California Disability Insurance:

  • Short term vs. Long term – short term coverage helps replace a portion of your income during the first few weeks after injury/illness, while long term coverage is for a much longer period of time.
  • Individual Disability Insurance – helps to replace a portion of your income and is generally income tax free.  With an Individual policy, you can select the maximum amount of time that you receive benefits.
  • Benefits of Individual coverage – Individual coverage helps to supplement the coverage you receive through your employer if they have group disability insurance and also provides coverage for those who do not have coverage through their job.
  • Group Disability Insurance – helps to replace a portion of your income, however, benefits under a group plan are generally taxable.  With a Group policy, your employer selects the maximum amount of time that you can receive benefits.

Still not sure if it’s necessary?  Here are “10 Simple Tips” if you’re thinking about adding disability insurance coverage:

  1. Income Dependency – if you and/or your family depend on your income for financial support, you need to have disability insurance.  Social Security disability benefits may not apply to your specific situation and they are not available if you’ll be out of work for less than a year.
  2. Income Replacement –helps to replace a portion of your income if you’re injured or too sick to work.
  3. Long-Term Disability – contrary to popular belief, most long-term absences from work are due to illness (e.g., heart disease, cancer, etc.) rather than work-related injuries.
  4. Age – even if you’re young and in good health, disability insurance is a good investment in case anything happens.  Plus, if you apply for coverage when you’re young and in good health, there are better chances that the process will be easier and the rates, better.
  5. Probability – the probability of being injured or becoming ill is higher than you think – even for younger and healthier people.  So why take that chance?
  6. 60-80% – this is the percentage of your after tax income that you need in order to pay for essential living expenses (e.g., housing, food, transportation, medical care, etc.).
  7. Cost – having disability coverage is a lot better than not having any, especially when you and/or your family rely on your paycheck to pay bills.
  8. Work Coverage – if your employer has group disability coverage, make sure you know what the benefits are.
  9. Advice – if you’re not sure, just ask.  You can’t get answers to your questions without asking them first.
  10. Carrier – when picking a company to go with, make sure you do some background research.  Check to see how much experience they have and if other consumers are happy with them.

If you’re still unsure about California Disability Insurance, don’t hesitate.  Give us a call!  Our knowledgeable staff is ready to help you find the right coverage to fit your needs!