Advice for recent grads – part three

A terrific employee benefit plan is designed to help employees earn and protect income and build financial security.  That said, disability insurance is an important consideration and often a part of the offering.

Disability insurance helps to protect your income in case you are unable to work for an extended period due to illness or injury.  Typically, disability insurance replaces a percentage of your lost income during your time way from work. There are short-term and long-term disability insurances. Short term disability covers a certain percentage of your lost salary should you be injured or incur an illness that prevents you from working for a period of more than a few days. Long term disability protects you from more serious or even catastrophic situations. Your employer may provide some level of disability insurance coverage – or this may be a voluntary benefit (meaning that you will pay for it).  In either case, the safety net that it provides can be invaluable.

Here’s the thing…disability insurance coverage can come into play during maternity leave or an extended illness that requires you are out of work for a period of time.  In other words, disability insurance does not mean that you are “disabled” – only that you are unable to perform your job for a period of time due to medical reasons.

Are you prepared financially to support yourself if something happened to you tomorrow and you lost your income for a period of time?  Few of us are.  It is important to look into this benefit now, because it is less expensive to get coverage today when you are young and healthy.

Have any questions or advice? Comment below!

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