When an employer’s disability insurance benefits are not enough

Thorough preparation in all things related to finance remains crucial, and that includes understanding long-term disability insurance. All that preparation to secure firm financial footing for you and your family may not be enough if you suffer from a debilitating illness or injury. Then you are no longer able to work.

But you think you have this area covered, too, because your workplace provides you with long-term disability insurance. However, you may have overlooked at least one important detail. What if the disability benefits from your employer’s plan will not be enough? After all, you have a mortgage, utilities and a car loan to pay, groceries to buy and children with education-related expenses. You need an additional safeguard.

Investigate supplemental insurance through private firm

In such scenarios, purchasing supplemental long-term disability insurance through a private insurance company may be a good idea. With all that initial preparation, you felt secure … to a point. But now that you are out of work and the benefits through your employer offer a generous 40% to 60% of your typical earnings, you find yourself struggling to pay bills.

The next step in protecting your family is to shop around for a supplemental long-term disability insurance policy. Make sure to work with an insurance broker who focuses on disability insurance and has a firm understanding of long-term issues.

When investigating a supplemental policy, an insurance company will take into consideration the current coverage you receive through your employer. This strategy is to ensure that you do not earn more money while disabled than if you still held a job. One thing to remember is that employees with higher salaries have higher chances of being under-insured.

It is natural to have questions as well as concerns about long-term disability insurance. In the Milwaukee area, you have a trusted legal ally in Alan C. Olson and Associates, always prepared to answer your questions.


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