Most workers never consider disability insurance until disaster strikes. Now that you're becoming a family, it's even more crucial to understand what coverage you might have in the event that you suffered a serious injury.
Talk with the benefits provider in your company and be sure to understand the following:
- Sick leave: How many days are you entitled to and at what rate of pay? This may have changed over time with your length of service to the company.
- Worker's compensation: If your disability results from a job-related injury, worker's compensation may provide some benefit. But don't look for it to replace your salary, especially if you are a high-end earner. States usually cap the benefit at two-thirds of the average statewide wage.
- Long-term disability: Only about 40% of workers in medium-size and large companies receive the coverage, and even fewer employees of small companies are protected. What's more, you may not qualify for coverage unless you've worked at the job for a several years. A standard group plan replaces 60% of income up to $5,000 a month.