Many employers offer group disability coverage as part of their benefits package. Most policies provide short-term, immediate coverage if you are unable to work, while some offer long-term benefits after an elimination period. Either way, they generally only provide a fraction of your normal earnings which can leave you struggling to pay bills at a time when you are also facing mounting medical expenses. Use these questions to evaluate if your group disability insurance provides enough coverage to meet your needs in an emergency.
What Other Sources of Income Do You Have?
Do you have other income that can help fill the gaps if you are unable to work? It could be a second job, investment income, or passive income, such as from rental properties.
How Much Do You Have Saved?
While many financial experts suggest you have at least six months of expenses put away, very few households actually meet that goal. If your rainy day fund is facing a drought, you won’t be able to rely on it in an emergency.
What Expenses Do You Need To Cover?
Do you have large expenses, such as a mortgage, student loans, or child support payments? If so, you want to ensure whatever insurance you have will leave you able to meet those obligations.
If you find that your group policy isn’t enough to meet your needs, an individual disability policy can help fill the gaps.