This coverage often has favorable premium rates and may provide basic coverage when no other and Individual Policies . Policies may be purchased by an individual even if his or her employer offers a disability benefit. If there is duplicate coverage, however, you would want to know about the coordination of benefits provisions of each policy. How much disability insurance you need depends upon your current income requirements. Disability policies often limit coverage to a percentage of earnings or to a maximum dollar amount.
Disability benefits are sometimes subject to income tax.
You need to determine if your benefits are subject to tax and, if so, how much would be left after taxes are paid. If the insurance was purchased on your behalf by your employer, the benefits will generally be taxable when you receive them. If you pay for the coverage, benefits are generally tax free. An employer sick pay plan pays employees for sick days which are usually earned annually. If not, you may need to consider an individual disability policy.