Baygroup Insurance

Maryland's premier Long-Term Care insurance agency

Disability Insurance

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What is Disability Insurance?

Disability insurance is protection for you and your family.  Owning a disability insurance policy will help provide you and your family with a source of income should illness or injury prevent you from working for a period of time.

According to the Social Security Administration, about 1 in 4 of today's 20 year olds will become disabled before they retire.  There is no crystal ball that will tell you whether or not you will become disabled, but you can defer a financial catastrophe by owning disability insurance. If a 30-year-old waits 10 years to buy, costs increase by 40%.  In your 20's, 50% of disabilities are cased by accidents compared to an overall 90%

Ask yourself "What would happen if my paycheck stopped?"  

  • How long can you and your family comfortably go without your paycheck?
  • How will you pay your mortgage if you did not have your regular source of income?
  • What type of lifestyle would you be able to maintain without your current pay?
  • Will you have to dip into your retirement funds to maintain your home and lifestyle?

No one expects to become disabled.  Be prepared by exploring your options with a disability insurance policy.  View video - Disability Insurance 101  The principals at Baygroup Insurance can help you understand disability insurance and shop for a policy that is right for you.  Learn more.

Do you have a group disability insurance through your employer?

If so, that is great!  Do you know what your policy will pay and when?  Baygroup Insurance can review your policy and report back to you.  Contact us

We may find these 5 things:

  1. The benefits are taxable to the recipient, because the employer pays the premium.  Many group plans are capped at 60% of employee's base salary, taxes reduce this by approximately 40%.
  2. Since the plan caps at 60% of base salary, those with incentive compensation such as commission and bonus are not adequately protected.
  3. Group plans generally have a cap on benefits of $6,000 to $20,000, penalizing highly compensated individuals.
  4. Employer group plans are not portable when the employee leaves the company. This can be a serious deficiency if the person develops a health issue that affects insurability.
  5. The employer plan may require the person to be totally disabled to collect benefits, not just able to do his or her normal duties.

If you need more coverage than what is provided in your group disability plan, contact Baygroup Insurance to explore ways to supplement existing group disability coverage..  Protect your family and lifestyle.  These plans do have medical underwriting.  Many policies permit increase in coverage as your income increases without any medical underwriting.

For more information about Disability insurance, visit our FAQ's.