Disability Insurance

Life happens, sometimes when you’re least prepared for it. Like most people, you have financial obligations you are responsible for, like a mortgage, rent payments, utility bills, and other everyday expenses. If you become disabled, how do you fulfill those obligations?

Even if you have disability insurance from your employer, it may not be enough to cover your bills. Disability insurance through Phoenix Insurance Group is designed to protect more of your income should you become disabled and are unable to work for an extended period of time.

What Does Disability Insurance Do?

This type of insurance replaces a large portion (sometimes 100 percent) of your income if you find yourself unable to work due to an illness or injury. Depending on the policy you purchase and the arrangement of the policy, it typically replaces between 45 and 65 percent of your gross income, though sometimes more or less. This money is tax free to further your spending power. It can help you pay your financial obligations, such as your mortgage, car payments, tuition, and help cover expenses for food, utilities, and clothing.

Some policies will pay this amount for the entire period of time you are disabled, while most of them have a fixed amount of income they’ll replace for a fixed amount of time. Make sure you understand the conditions and limitations of the disability policy you select.

Who Needs Disability Insurance?

Essentially anyone who works and would have a hard time making ends meet if he or she were suddenly unable to do so needs disability insurance. However, those who have children, may need it even more. You never know when you’re going to have an auto accident, get stricken with cancer, or have some other illness or injury that renders you unable to work for an extended length of time – perhaps even a lifetime.

Disability insurance can’t replace what you’ve lost, but it can be a lifeline to help you care for your family, and prevent you from losing your home while you’re recovering or adjusting to life after your disability.

Isn’t This the Same Thing as Workers’ Compensation Insurance?

Many people mistakenly believe they have this type of coverage through their employers through workers’ compensation insurance. This is not the case because workers’ compensation coverage only offers replacement income to people who were injured or become ill on the job. Disability insurance is different because it offers assistance for people who are disabled while off the clock.

The other difference to keep in mind is that your employer is required, by law in the state of New Jersey, to pay for your workers’ compensation insurance coverage. Disability insurance, on the other hand is not required, though some employers may offer it as part of a benefits package for employees.

If your employer does not offer disability insurance coverage, or if you’re concerned that what your employer does offer is inadequate, call Phoenix Insurance Group to schedule a consultation so you can see whether or not this is the right product for your needs.

Why is Disability Income So Important?

The problem with disability is that it’s most often a result of something unexpected and unplanned for. Many people simply do not have the money set aside to tide them over for a long-term illness or recovery process.

That’s where disability insurance coverage comes into the picture. It offers a safety net for your family while you’re recovering. This way you can all focus on the recovery process rather than rushing things, which may lead to further, more debilitating injuries, in hopes you can return to work before you’re ready,

Phoenix Insurance Group offers disability insurance coverage to people throughout Central and North New Jersey. If you’re not sure you’re covered by this important insurance, it’s time to make sure. Call us today: 908-879-6500 and we’ll help you get your disability coverage needs squared away.