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

13 States That Tax Social Security Benefits
social security

13 States That Tax Social Security Benefits

You may have dreamed of a tax-free retirement, but if you live in these 13 states, your Social Security benefits are subject to a state tax. That's on…
October 4, 2021
How Big of a Threat Does Inflation Pose to Your Retirement?
retirement

How Big of a Threat Does Inflation Pose to Your Retirement?

You might be surprised how much inflation can nibble away at your retirement nest egg over time if you aren’t prepared.
October 3, 2021
10 Best Stocks for Rising Interest Rates
stocks

10 Best Stocks for Rising Interest Rates

The 10-year Treasury yield is hovering near its highest level in months. Here are 10 of the best stocks to buy in a rising interest-rate environment.
September 30, 2021

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.
October 19, 2021
Child Tax Credit Payments Sent October 15
Tax Breaks

Child Tax Credit Payments Sent October 15

The IRS sent another round of monthly child tax credit payments on October 15. Most families received their payment by direct deposit.
October 16, 2021
Too Busy to Study Your Company's Health Insurance Options? Do These 4 Things
health insurance

Too Busy to Study Your Company's Health Insurance Options? Do These 4 Things

Yes, it's a tedious task. But one hour of your time could be worth thousands of dollars. A former firefighter and paramedic turned financial planner s…
October 9, 2021
You May Get a Raise in 2022
Employee Benefits

You May Get a Raise in 2022

In a strengthening labor market, businesses are paying more to attract and retain employees.
October 4, 2021