3 Reasons Supplemental Disability Insurance can Help you

Supplemental disability insurance is simply additional insurance meant to provide extra coverage to support existing disability insurance you already have.

Most companies offer disability insurance to their employees as part of their benefits. However, these policies would typically cover only about 60% of your income. Supplemental disability insurance can cover an additional 10% to 20% of your income. A group disability insurance plan may base its payments on your annual salary alone, but a supplemental plan may also recover a portion of any bonuses you may have received.

Supplemental disability insurance can also provide more specific coverage for your needs. Most disability insurance policies put a two-year limit on payments, with the understanding that within two years you could have theoretically re-trained for another occupation. If your former occupation had a high salary, though, any new occupation could result in a dramatic loss of income. However, if you purchase a supplemental insurance policies offering “own occupation” coverage, you could still receive benefits for as long as you are unable to do the same work you were doing at the time of your disability. 

Finally, purchasing supplemental disability insurance would ensure that you are still covered even if you leave a given job. If you resign, change careers, or are let go, you cease to be covered by your old employer’s plan, and it may be some time before you would be able to participate in a plan with any new employer. If you already have a supplemental disability insurance policy, however, you would still be covered by that plan, and a portion of your income would still be protected during that lapse in coverage.

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