Many workplaces offer group disability coverage, but not many workers understand just what that coverage means for them.
In a nutshell, group disability insurance covers an individual for a certain percentage of regular pay if he or she can’t work due to an illness or injury. In many cases, policies cover up to 60 percent of that regular pay. The figure may vary according to the base rate of pay on the policy. Once an individual claims benefits, he or she pay taxes on them: they are regarded as income, just like a regular paycheck. However, the income is derived from an insurance company, not from your regular employer.
Every group disability insurance policy is different, but all are likely to feature “Any-Occupation” and “Own-Occupation” disability categories. The Own-Occupation category covers the insured 24/7 for 24-36 months. if the employee still can’t work after that period of time, the insurance company may dispute continued payments under the claim and insist that the person find work in another area if he or she is capable of working.
Each situation is different, and it pays to know just what your group disability insurance covers. Ask questions and find out before you find that you need to use it.
For many Americans, life insurance enrollment presents a contentious decision. Many wonder how to pay for health insurance alone; the addition of life insurance seems overwhelming. Fortunately, if your employer offers group life coverage, your costs will be significantly lower than they would be if you chose to buy a policy on your own. Check to see what your workplace offers. There are always advantages under the umbrella of a group life insurance policy.
Also, remember that, even though some of the events covered by your group life insurance will not be applicable to your situation right now, they may become relevant later. Consider your lifestyle carefully before declining to enroll in a group life policy at work. It’s usually better to be safe and covered than sorry and stranded later.
You may find that your employer offers you vision coverage. If not, you can opt to carry your own plan (which is possible and extremely affordable). When you select the insurance coverage you want, you may face various choices (including the decision to enroll in a plan at all).
Typically, carriers offer two types of vision plans — advanced, for the “tougher stuff” including detached retinas, glaucoma treatments or laser therapy, and basic, for the regular checkups and glasses you have or may need in the future.
Do you need a vision plan? A vision plan offers proactive health care options, no matter what your current needs are. Regular checkups allow you to stay on top of any changes in your vision. Those visits will ultimately cost you less than a major, neglected discovery would.
While some health insurance plans do come with a vision and dental component, most of them do not. If you need and want dental coverage, make sure you ask your insurance agent precisely what is included in your potential policy. If you buy health insurance assuming you have dental and vision coverage, you might find out later that the cavity you had filled costs you money directly out of your pocket.
At the dentist’s, ask about the various categories of coverage. Many dentists classify various procedures differently, which may affect what kind of dental plan you want from your insurer. Similarly, if you enroll in dental coverage through your workplace, check your policy. Know what to expect when you make a dentist’s appointment.
