Should I Get Group Disability Insurance?

Group disability plans are a necessary component to treat disabled employees who are unable to resume their normal work duties. The global pandemic has shed light on the importance of these topics and it’s made a variety of consumers reassess the importance of long-term security and coverage. Life is full of uncertainties and while you shouldn’t always ponder on the what if’s, planning ahead for group disability coverage is something that can drastically change the course of your life. Armah Financial Services strongly believes in considering taking precautions such as group disability insurance in CT that can safeguard your financial wellbeing in the event of misfortune.

Being proactive is something that can protect you and your family for the foreseeable future. Employer-sponsored plans are a good place to start, but you should also look into adding supplemental coverage with an individual policy.

Group Disability Insurance and the Supplementation of an Individual Policy

When discussing niche topics on this blog, we typically emphasize the importance of financial wellness and why it’s important to have your assets, investments, and other valuables in check, to ensure that you and your loved ones can attain financial success and freedom. We aim to take a more holistic approach which we like to call “financial therapy”, making the process of planning and strategizing enjoyable so that you can get the most out of your experience with your trusted advisor.

A component of financial therapy will surely include the topic of group disability insurance in CT. Many employees have gotten a general education on group disability insurance, but until recently, consumers have undermined its importance in their lives. For those who are temporarily or permanently disabled, without a comprehensive group disability plan, you will miss out on the opportunity to earn back some of the income that you’ve lost. Life can be unpredictable, no one is exempt from suffering a disability, regardless of age. Disability plans typically pay out benefits that are equivalent to 60% of your salary.

The social security administration put out an interesting study that indicates that 1 in 4, 20 year olds will deal with a disability before reaching retirement age. While many people can recover from these setbacks, they may be forced to take on other jobs that don’t pay as much.

It’s important to note that group disability with one employer will not follow you to your next job, an individual plan will, because underwriters set it up this way. Some employers will grant you the option of purchasing additional coverage that is upwards of 70% of your earnings. But if they don’t offer it, it’s very feasible to acquire an individual plan.

To sum it up, Group Disability Plans Vs. Individual Plans are as follows:

-       Group disability plans are tied to your job, therefore they are not transferable when you switch or lose jobs.

-       Conventional group disability plans are a good stomping ground, but supplemental (individual) plans can do wonders in guaranteeing optimal coverage

Should you apply for disability coverage? The short answer is yes. There’s a lot to evaluate here, but a qualified financial planner will make you wary of some viable choices that can enhance your personal situation.

Integrating Other Benefits

Employers will offer benefits that consumers will know very little about. Anything that can boost your financial morale is worth looking into and in order to come to these conclusions, it would be in your best interest to coordinate with a financial advisor who can prepare you for the hardships that come with life-changing disabilities.

Long-term disability plans are more impactful than most would assume. Interesting enough, Social Security Disability Insurance (SSDI) can be integrated with your long-term disability plans. Investopedia has put out a comprehensive article of what this looks like for those who can take advantage of it. 

Group Disability Insurance in CT

Group disability plans are something that consumers can save for a rainy day. It’s scary to think of how quickly your work circumstances can change, but sometimes fear is a driving force for implementing an effective plan. For more information on how to get started, you can contact us today to learn more about our process!