disability insurance

Disability insurance: Coverage vs. real benefits for employers and employees

Thought Leadership on Accounting and Finance presented by CliftonLarsonAllen.

When you start a new job and HR hands you your new benefits booklet, which page do you turn to first? Typically, health insurance decisions are the first you need to make — which plan, whom to cover, what deductible, health savings account or not.

There’s no question that health care coverage is a concern for everyone, and insuring against unexpected medical bills is a prudent and important decision. But don’t forget that your income not only pays the premiums for health insurance, but will also be needed to cover costs that insurance won’t.

Employees say that they value their income more highly than any other resource, and like anything valuable, you need to know your options for protecting it. So turn to the disability insurance section of your benefits plan (if offered) and get the details on how to protect your income.

Income protection with disability insurance 

You need to understand how your disability coverage works and what it protects. Everyone who is employed for a wage should ask (and be able to answer) these questions:

  • Do I have disability insurance through my employer?
  • What percentage of my income does it cover?
  • Is there a maximum or cap on the amount of income covered?
  • How do I become eligible for disability benefits?
  • When will benefits begin?
  • Who pays the premium for the disability insurance, me or my employer?
  • Will the benefits I receive be taxed as ordinary income?

Read the full article here. 

Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor. CliftonLarsonAllen Wealth Advisors, LLC disclaimers

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