Insurance Matters: Your Onemain Solutions Information Source

Will Group Insurance be enough?

What is disability insurance?

A disability can rob you of your ability to earn a living. Disability insurance is a type of coverage that gives you protection against the chance of not being able to pay your expenses if you become disabled.

Who provides disability insurance?

Disability insurance coverage is available through a variety of sources such as: Individual insurance plans, Government plans and Group insurance plans offered through an employer, union or association

• Disability benefits typically replace up to 50 to 80 per cent of your regular income.

Group Insurance Plans

Sick leave

If you are sick or injured, you receive full pay for a short period (usually a few days or up to a few weeks, sometimes longer, depending on the employer). This is coverage provided by the employer.

Short Term Disability (STD)

This coverage begins when sick leave runs out. Most short-term disability plans pay a percentage of normal earnings – for example, 65 per cent – up to a certain length of time. Typically, this can be up to 15, 26 or 52 weeks. Some employers, however, do not to provide short term disability benefits.

Long Term Disability (LTD)

This coverage starts when your short-term disability benefits run out. Typically, the goal is to replace 60 to 70 per cent of your normal income, but there is always a maximum dollar amount per month.

Will Group Insurance be enough?- That depends on you and your group plan

• What percentage of income will be paid? Is there a maximum dollar limit?
• When do benefits begin? What is the waiting period?
• Are there any limitations or exclusions? (Pre-existing condition clause)
• How long do benefits run? Are they taxable?
• How is ‘disability’ defined in your plan?

What does your current standard of living cost and how do you feel about having to cut back?