Have you protected your most valuable asset?
(Hint: it’s not your home or even your Thrift Savings Plan account!)
When we think of insurance, Homeowner’s or Car Insurance often comes to mind first. However, many overlook the need to protect something that could be worth even more: their income. If you’re of working age, your income could be your most valuable asset. Consider this: a 40-year-old earning $75,000 annually could expect to make $1.5 million over the next 20 years. That’s not even counting any raises or cost-of-living adjustments this person might receive.
Protecting Your Income with Short-term Disability Insurance
Short-term disability insurance protects your ability to earn a living. If an accident, illness, or other medical reasons prevent you from working, it replaces a portion of your income so you can continue paying your bills. Disability is more common than many realize—about 5% of workers experience a short-term disability each year, and 25% will face at least one occurrence during their career.
Who Needs Disability Insurance?
Anyone who depends on the income they receive from working should consider disability insurance. It ensures you receive a partial amount of your salary if you become too sick or injured to work. Without enough sick or annual leave, your paychecks stop, but your expenses continue—and you may even incur additional medical costs due to the disability.
Don’t I Already Have Disability Coverage Through My Job?
If you’ve been in the Federal Employee Retirement System (FERS) for at least 18 months, you’re covered for long-term disability. This is an event that is expected to last at least 12 months. However, short-term disabilities, which are much more common, are not covered through FERS. Purchasing a short-term disability policy protects your income if you’re out of work for less than 12 months due to medically covered events.
How Does Short-term Disability Insurance Work?
If an illness or injury prevents you from working, your short-term disability policy pays you a monthly, tax-free benefit for up to 12 months. You can choose the monthly benefit amount, and the premium can be deducted from your paycheck, making the coverage customizable tot your needs and hassle free. Many plans have a 14-day elimination period, meaning you’d only miss one paycheck before coverage begins.
Ready to Learn More?
Fill out the form below, and a United Benefits representative will contact you. We offer plans specifically for federal employees, and you can sign up in minutes. Many of our plans are guaranteed issue without underwriting if you’ve been actively working for the past 30 days. Pre-existing conditions are covered after 12 months of coverage. Contact us today to enroll or learn more about our plans’ features, benefits, and exclusions.