No one likes to think of losing their livelihood due to an accident or disability. The emotional and physical hardships are challenging enough, but having financial difficulties as well is often catastrophic.
A major benefit of including disability income protection insurance in your retirement or business financial plan is to ensure that you and your family maintain some semblance of security if you’re unable to work or manage your company due to an injury or illness. Leonard Financial Solutions has licensed professionals that can outline your goals and advise on your best options.
What Is Income Protection Insurance in New Jersey and How Does it Work?
Income protection insurance is a type of policy that provides financial protection in the event an individual becomes disabled and is unable to work. The policyholder pays regular premiums, and if they become disabled due to illness or injury, they receive a monthly income based on their coverage amount. These payments can be used to cover expenses such as medical costs, mortgage payments, and other living expenses while the insured person is unable to work.
Types of Income Protection Insurance
Whether you’re an entrepreneur or an employee, it’s important to have a good understanding of how income protection insurance works and what you can expect.
Short-Term Disability Insurance
This type of coverage allows for a certain amount of time spent in recovery—typically between three and six months—and will provide monthly payments during that period.
Long-Term Disability Insurance
This policy provides protection for longer-term disabilities lasting more than six months, as well as partial disability or less severe conditions. The payment period can last from five years up to retirement age.
Group Disability Insurance
This type of plan is usually offered through an employer and pays a percentage of the insured individual's salary if they become disabled and are unable to work.
Business Overhead Expense Insurance
This plan helps cover the overhead costs associated with running a business when the owner is disabled, such as rent, utilities, advertising, and other administrative costs.
Working with an experienced insurance agent can be an invaluable resource when it comes to finding the right income protection insurance plan for your needs. Our experienced team provides insight and guidance throughout the process, advises you on important features, and makes sure you’re getting the best coverage possible.