Is My Employers Disability Insurance Plan Good Enough?

The most important rule of disability insurance is that any disability insurance is better than no disability insurance at all. If you are disabled without disability insurance, you will be limited to what is offered by the Social Security Administration, which provides relatively low payouts and can be difficult to qualify for living on Social Security Disability would be a dramatic decrease in most doctors standard of living. Many employers and professional associations also offer disability insurance, so if your employer is paying the premiums, be sure to take advantage. If they aren't paying the premiums, you'll have to compare the group policy to the individual policy from an independent agent. As a general rule, individual policies have a stronger definition of disability and higher premiums that remain flat. Importantly, they are also portable, so they can be taken with you from one job to the next. Group policies, on the other hand, are less expensive. Although premiums generally rise as you age, they often don't ask questions about your health and hobbies, but as a real downside cannot be taken with you when you leave, in most cases, an individual policy is best. Occasionally, it can make sense to have both.

The hosts of the White Coat Investor are not licensed accountants, attorneys, or financial advisors. This podcast is for your entertainment and information only. It should not be considered professional or personalized financial advice. You should consult the appropriate professional for specific advice relating to your sit.