Why would I purchase voluntary life or disability insurance?
Life insurance is intended to provide your dependents financial assistance in the event of your death. The amount of the policy you purchase is intended to reflect the needs of your family. This includes paying off bills and debts, like medical bills and funeral expenses. It can also be intended to provide funds to pay off a mortgage, estate taxes, or cover a child's education.
Short term disability (STD) insurance is an insurance policy that can replace a portion of your income during the initial weeks of a disabling illness or accident. Policies can cover from the first 6 months up to a year of disability, providing coverage during the waiting period of most long term disability insurance plans.
Long term disability (LTD) insurance pays you a portion of your income after you run out of both sick leave and short term disability. Depending on your plan details, LTD may pay you for a specific number of years, or until you turn a specific age.
If your employer does not offer basic life or disability insurance or their basic package does not meet your needs, you may wish to purchase a voluntary policy.
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