What is Disability Income Insurance?
Disability insurance in NJ is a supplemental policy intended to protect policyholders if they are unable to work after suffering an illness or accident. Policyholders receive monthly benefits to help them cover their regular expenses while they are out of work. It’s an excellent way to bridge the gap so that a person does not fall behind on their bills.
While disability income does not guarantee 100% of your income, it does replace between 45% and 65% of your gross income. Most employers provide their employees with disability insurance or you can purchase this coverage through a life insurance broker. Both short- and long-term disability insurance are available.
Will Disability Insurance Pay for COVID-19-Related Disabilities?
Generally speaking, NJ disability insurance provides income benefits when you’re unable to work for a medical reason. What this means is that unemployment in itself is not covered. If you’re staying home because of quarantine, for example, this is not a form of injury or illness and your income will not be covered.
And, if you test positive for the virus but are able to work from home, you probably won’t qualify for disability benefits either. However, if you are unable to work for an extended period of time due to being sick from the virus, you may qualify for benefits. A series of conditions will have to be met in order to establish eligibility, but disability insurance does cover the virus.
Where to Find Disability Income Insurance
Individual disability insurance can be a great choice if you don’t receive disability insurance through work. It’s also an option for high earners looking for extra coverage. This type of policy will stay with you even if you change jobs. Even if your employer does offer disability insurance, you may still choose to supplement your policy with additional coverage.
Leonard Financial Solutions offers short term disability insurance in NJ from a number of carriers. Let us get you an insurance quote that will offer you the protection you need. Contact us today for a consultation.