However, more people become disabled from sickness than accidents. And the pandemic has certainly brought to light that people can get sick and miss months of work - even when they’re young and healthy.
Let’s look closely at the NJ disability insurance trends to have on your radar and how to protect your most valuable asset - your income.
Financial advisors are focusing more on disability income insurance.
Financial advisors help clients reduce their financial risk, so it’s only expected that disability insurance will be a hot topic in light of the pandemic. But even without a pandemic, this insurance is a valuable asset.
A study by the Social Security Administration found that one in four people could expect to miss at least one year of work due to disability before reaching retirement age. Some of the most common problems that young people experience are back pain, depression, diabetes and heart disease.
More employers will add or update their long-term disability (LTD) benefits.
If a person doesn’t recover in a few weeks, they are eligible for normal group LTD benefits after 90 or 180 days. Unfortunately, employers are not mandated to carry LTD - only about half do. Instead, they offer short-term disability, which only lasts for six months or less.
While LTD is another expense for employers, it eliminates the need to have to make difficult decisions on when to stop paying employees after their sick pay runs out. Employers can also attract and retain more skilled workers by offering a better benefits package.
Social Security Disability Insurance is experiencing financial problems.
Employees who are unable to work can seek benefits from Social Security, even if they’ve been approved for LTD. That's because the insurance company can offset the amount they give based on what Social Security covers.
However, the number of people on Social Security has increased at the same time the program is experiencing financial problems. These issues are due to the pandemic, the economic recession and low paid workers being the largest group on the program.
More people are expected to get disability income insurance.
With so much at stake, it’s clear that people must protect themselves. Disability income insurance works like your other insurance plans. You pay a premium each month and the insurance carrier agrees to pay you a monthly benefit if you can’t work. Policies typically pay 60 to 80 percent of your income and can last for months or years.
Find Disability Income Insurance Today
If the pandemic has taught us one thing, it’s to prepare for the unexpected. This doesn’t mean you have to live in fear, but you should protect the things that matter most because they aren’t a given.
This is exactly what disability income insurance is designed to do - protect your income if you can’t go out and earn it. Contact Leonard Financial Solutions to learn more about this type of coverage, how much it costs and where to get it.