Coronavirus and Your Money

Disability Insurance Can Provide COVID Coverage

If you are concerned about long-term complications from COVID-19, consider disability insurance coverage.

Health insurance isn’t the only benefit you need to review during open-enrollment season. Nearly half of large employers expect an increase in disability claims because of complications from COVID-19, or what’s often called long-haul COVID, according to the Business Group on Health.

If you had COVID-19 and are concerned about long-term complications—or you have other long-term health concerns—you may want to consider disability insurance coverage from your employer. If your employer offers a group policy that provides long-term disability insurance, it may pay for the premiums or cover a portion of the cost. In other cases, you’ll be on the hook for the entire premium, but you’ll probably pay less than you’d pay for an individual policy.

Group disability insurance generally pays you up to 60% of your salary in the event that you’re unable to continue working at your job, you can’t switch to a different position, and the disability is expected to last for at least a year. Benefits are considered taxable income.

If you don’t have access to a group policy through work (or you think the coverage is not enough), you can buy a policy on your own. Premiums for an individual policy are based on your job, the policy’s definition of disability, the benefit amount, your gender and age, and other coverage details, with the cost typically equaling 1% to 3% of your annual salary.

Some policies, known as own-occupation policies, will provide coverage if you’re unable to work at your specific occupation, even if you can do another job. More-restrictive policies, known as any-occupation policies, will pay out if you aren’t able to work at any occupation. These policies are usually cheaper compared with other options.

To compare policies, go to www.policygenius.com, an insurance-comparison website. Or you can find an independent insurance agent at www.trustedchoice.com. Keep in mind that when you buy an individual policy, you’ll be required to take a medical exam.

Most Popular

What Are the Income Tax Brackets for 2022 vs. 2021?
tax brackets

What Are the Income Tax Brackets for 2022 vs. 2021?

Depending on your taxable income, you can end up in one of seven different federal income tax brackets – each with its own marginal tax rate.
September 20, 2022
Your Guide to Roth Conversions
Special Report
Tax Breaks

Your Guide to Roth Conversions

A Kiplinger Special Report
February 25, 2021
I’ve Inherited a Lot of Money. Now What?
estate planning

I’ve Inherited a Lot of Money. Now What?

First, put all major decisions on hold. A financial planner can help you come up with a plan that addresses your goals, dreams and needs.
September 25, 2022

Recommended

Taxes on Unemployment Benefits: A State-by-State Guide
state tax

Taxes on Unemployment Benefits: A State-by-State Guide

Don't be surprised by an unexpected state tax bill on your unemployment benefits. Know where unemployment compensation is taxable and where it isn't.
September 23, 2022
Tax Changes and Key Amounts for the 2022 Tax Year
tax law

Tax Changes and Key Amounts for the 2022 Tax Year

Americans are facing a long list of tax changes for the 2022 tax year. Smart taxpayers will start planning for them now.
August 19, 2022
Inflation Reduction Act Boosts Obamacare Tax Credit
Tax Breaks

Inflation Reduction Act Boosts Obamacare Tax Credit

Enhancements to the premium tax credit are extended for three more years under the Inflation Reduction Act.
August 17, 2022
Hearing Aids to be Sold Over the Counter
Healthy Living on a Budget

Hearing Aids to be Sold Over the Counter

The White House estimates people will save nearly $3,000 by not having to get them through a medical professional.
August 16, 2022