Over the last few years many businesses have reduced their benefit plans.  I can’t blame them, as the cost of employee benefit plans continues to escalate.  The potential impact of this hit me when I was reviewing the long term disability plan of a major financial institution that a new client was working for.  

The disability income which would be received was very low in relation to the client’s income.  In addition, the disability income would be taxable.  I’ve recommended my client purchase their own disability insurance policy.  The advantages of having your own policy are that you can:  

1.  Customize your plan to suit your own circumstances.

2.  Know the maximum coverage you could obtain, and decide on the amount you need.

3.  Ensure the disability income is tax free.

4.  Potentially obtain a refund of some of the premiums, if you don’t make a claim.

5.  Be covered so you wouldn’t have to work in a different capacity, if you couldn’t work in your current capacity.

6.  Change employers and not be concerned about the extent of their employee disability coverage.  

I’d bet most people have no idea what disability insurance coverage they have.  Don’t wait until it’s too late.  Check your coverage.