Your ability to produce an income is your most valuable asset. The value of your income is not your weekly, monthly or annual pay, but rather the cumulative income received from today until retirement. This is a significant amount. The ability to work and create income can change in an instant. An accident or illness can derail the best intended plan interrupting lifestyle and retirement goals.
Many employers provide or offer Group Long-Term Disability (LTD) coverage. One should be careful to understand the limitations in the group disability plan, including:
- Some forms of compensation are not covered (Often variable compensation such as bonus)
- Contractual restrictions on the definitions of disability and time limits on claims for specific conditions
- Limits to the monthly maximum benefits payable
Individual disability insurance (IDI) can supplement a group long-term disability plan and address these issues.