Just like life insurance, two fundamental kinds of disability insurance are standard disability insurance (Your organization takes care of these) and individual disability insurance (You need to buy these). However, private disability insurance is always costlier than standard disability insurance.
As a result, an individual must vigilantly assess his or her company’s plan and come to a decision whether or not he or she needs additional coverage. You can begin by looking for options available with company’s group policy. Some plans permit you to acquire supplementary coverage, so that you can get a cover to recompense more than two third of your wage via that policy often at rates lower than what you would get if you were to hunt for a private plan.
Generally, you will find variations in laws across the states. In New York, if an individual is disabled by a sickness or wound when not on the job, NYS disability insurance offers short-term provisional cash assistance to those who are eligible. Such assistance seeks to replace loss of pay due to sickness or wounds incurred. New York State even offers cover for disabilities occurring during pregnancy. Note that injuries, disabilities or sickness arising out of or during service are covered separately under another law.
All employers come under the ambit of this law. They need to provide disability insurance benefits to all employees that have successfully completed their probation period. Under the NYS disability insurance, the employer can then purchase group plans from insurance company of its choice. There is also an option to become a self-insurer.
If your employer fails to provide for you such a policy, it would amount as an offence under the NYS disability insurance law. When your company’s standard disability insurance seems inadequate, you may want to go for additional cover on your own. When purchasing private disability insurance in the state of New York, here are a few things to bear in mind.
In fact, you will come across many terms in a policy document having meanings that may not be clear. Before finalizing a policy, ensure that you have selected options that suit you the best. If you do a bit of research about various New York State disability insurance companies and plans and chose wisely before committing anything, it can result in significant benefits later. Many a times, your agent may not be that knowledgeable about various terms and conditions mentioned. Read the fine print and ensure that you get all your questions or doubts resolved. Contact a company’s customer care representative. Here, you can be sure to find accurate information and guidance over all the policy details.
Most disability insurance policies in New York State cover you for a specific period only. There are both short-term and long-term plans. In addition, a company may also provide an option for you to receive disability benefits for the rest of your life. No doubt, these are costlier than a limited term policy. You need to use your own judgment and arrive at a choice. Note that while your company’s group policy will cease when you stop working there, but your private policy is for life. Buying one now is a smarter choice.
Another important consideration is the fact that costs in a metropolitan city like New York are likely to be on higher side in the future, whereas your policy takes into account your current income for arriving at a benefit amount. You need to ask if the insurance firm provides any options for you to increase these income levels in the future.
There is a waiting period after the date of your sickness or disability before you can start receiving your benefits. Most insurance firms will allot you default duration. Since this affects your premium amount, you need to decide on your waiting period duration. Some people opt for shorter waiting period to ensure safety. Those who keep same savings aside for an emergency can choose to lower their premiums by opting for a longer waiting period.
Lastly check out clauses that leave out your pre-existing health conditions or addictive habits. Often a company will not pay you if it discovers that you already contracted an illness or condition at the time of signing up. Thus, it makes sense to purchase such a policy when you are young, healthy and not suffering from any ailment.
If you already have disability insurance, consider getting supplemental disability insurance to increase your coverage