If you’re on short term disability, managing your finances can be harder than anticipated because your earnings will not be the same as your usual paycheck. With proper planning and coverage, however, you can keep your earnings on short term disability similar to your regular earnings. 

Whether it’s due to complications from COVID-19 or another illness or injury, here are some tips for managing your finances when on short term disability. 

Find Financial Relief from Government Programs 

First and foremost, you’ll want to know what income-replacement insurance options are available to help you offset your loss of income. This includes: 

• Social Security Disability Insurance (SSDI) supports individuals who are disabled and have a qualifying work history, either through their employer or a family member. 

 

• Supplemental Security Income (SSI) programs provide basic financial assistance to older adults and individuals with disabilities with limited resources and income. 

Get Disability and Income Replacement from Your Employer

Your employer may also offer short- and long-term disability insurance, workers’ compensation or voluntary supplemental health insurance products like accident insurance. These products work differently from one another, but their purpose is to help replace lost income resulting from an illness or injury. 

• Disability insurance pays a percentage of your salary until you’re able to work again.

 

• Workers’ compensation provides benefits to offset your expenses and lost income following an on-the-job injury.

 

• Critical illness insurance usually gives a lump sum payment based on your diagnosis.

 

• Accident insurance also gives a lump sum payment based on your injury. 

Be Proactive: Things to Do in Advance 

Many people falsely assume they’re invincible, especially when they’re young. In reality, one in four 20-year-olds will become disabled before they retire due to complications like injuries, cancer, mental health problems and heart attacks. Therefore, it’s important to be prepared. 

Here are a few things we recommend for everyone, regardless of age and health: 

• Set a budget and stick to it. This prevents you from living outside of your means. 

 

• Prioritize credit card payments. You should always pay something, even if it’s just the minimum.

 

• Research and be aware of your employer’s policies. Ideally, you should do this before accepting the job. 

 

• Take care of your physical and mental health. The healthier you are, the less likely you are to suffer an illness or injury while at work.  

 

• Maximize your savings. By putting away money each month, you’ll have a rainy day fund to rely on if you can’t work. 

We also recommend talking to your financial advisor about disability income insurance. This type of insurance provides income to individuals who can no longer work because of a disability. This income protection will allow you to bring home most of the money you normally earn so that you can maintain your same lifestyle and continue paying your bills.

To discuss disability income insurance and if it’s something you should have, contact Leonard Financial Solutions today. 
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Being unable to work due to an injury or illness may seem foregin to some people, particularly those who are in their younger working years. However, the COVID-19 pandemic has shown us that you don’t have to be old to get sick and be out of work for an extended period of time. This is starting the conversation about disability income insurance and its importance, regardless of your age. 

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. 

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Disability insurance in NJ is a type of insurance that makes sure you have income coming in even when you’re sick or injured and unable to work. As important as disability insurance is, it’s often overlooked. People usually don’t imagine themselves suffering a long-term disability, especially when they’re young and healthy. However, over 1 in 4 of today’s 20-year-olds will face a disability before they retire. 

While we recommend disability income insurance for many clients, here are the types of people who can benefit most from this coverage. 

Sole Providers of the Family 

If you are the sole provider of the family, you’ll definitely want to consider disability insurance. If you get sick or injured and can’t work, your livelihood could be in jeopardy. How will you pay the mortgage and the bills without a paycheck? Luckily, disability insurance is designed to fill this gap and provide you with the money you need to live while you heal. 

Those with Physically Demanding Jobs 

Do you have a physically demanding job such as construction, nursing or physical therapy? If so, you’ll benefit from having disability insurance. Demanding jobs like these are more likely to take a toll on your physical health becuase you’re on your feet all day, working long hours, lifting patients, etc. If you are suddenly unable to work due to an injury, disability income insurance will pick up your bills. 

Parents with Minor Children 

If you have children under the age of 18 living at home, it’s worth looking into disability insurance. Getting sick or injured at work doesn’t stop you from having to care for your family. Disability income insurance in NJ will provide you with the income you need to pay the bills, put food on the table and bring the kids to the doctor. 

People with Recurring Injuries 

For some people, once they suffer one injury, they’re more likely to suffer another. If you’re someone who gets frequent injuries, you’ll definitely want to consider disability income insurance. This way, you’ll have the peace of mind that you can rest and heal while protecting your paycheck and caring for your family. 

Is Disability Income Insurance in NJ Right for You? 

If you fall into one of the groups above, it’s important to look into disability insurance, how much it will cost and how it can protect you and your family. You can then make an informed decision. For free insurance quotes in NJ, contact Leonard Financial Solutions. We’ll learn about your situation and how disability insurance can help. 
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This type of insurance is meant to protect you in case of a disability hindering your ability to work. This applies if you are unable to perform the core functions of your job due to the development of a physical or mental limitation.  It can be caused by an accident, an illness, or psychological disorders.  It includes short-term disability benefits, long-term disability benefits, and paid sick leaves.