Supplemental
Disability Coverage
Many employees are covered by their employer's group Long
Term Disability insurance. These plans protect 60% to 66 2/3% of
income
up to a maximum monthly benefit. However, if the employer pays
the premium for this coverage, the monthly benefit is income
taxable at claim time. As a result, a disabled employee normally
will take a 33% to 40% reduction in pay, or more.
Supplemental
Disability Insurance is additional disability insurance protection
which is paid in addition to group insurance. The
income is received tax free, as long as the premium is being
paid by an individual. By adding supplemental disability insurance
to one's group insurance, approximately 75% to 80% of after-tax
income can be insured.
Contact
us to discuss your specific needs. |
