There are times when a sudden illness or accident will make it impossible for someone to do the everyday things that need to be done, let alone go to work, and during that time money would become a major concern. That's why more Americans than ever are incorporating disability insurance into their financial plans, safeguarding their families and their assets in the event of an unexpected crisis.
Companies understand that employees want extra protection, and many of them provide disability insurance as part of a regular benefits package. On the one hand, this is a strong worker investment strategy and makes procuring this protection easier for those at the business. At the same time, though, it makes disability insurance a more expensive pre-tax deduction in every pay period.
Reuters wrote that due to this discrepancy in expense, some employers are helping out by simply providing the benefit themselves, but this is not yet the norm. The source stated about 85 percent of mid-sized entities offer these benefits, but most participants only get minor discounts by going through a group plan or a special corporate-based program. While this insurance remains an option for many workers, therefore, not all of them will want to pay the hefty surcharges associated with procuring it through their companies.
Getting insurance like this is very possible for those looking outside the scope of employment. As Investors Online wrote, this is also a good way to get these benefits without paying extra tax for them. Having personally-sourced disability insurance also means that payouts are not taxed, unlike those received through work.
This will make getting these benefits upfront more expensive, the source noted, as that 5 to 10 percent discount offered through group packages can be worthwhile for the up-front price tag. However, considering the full scope of a financial plan should show exactly where the benefits of that lower first cost actually fall. By getting a private policy, the holder will pay a little more at first but get more overall by not having to pay taxes on the regular installments or any payout if it ever gets activated. What's more, renewing early, comparing different providers and seeking out other discounts can make this a much better option.