Income insurance is a little different. While sick leave is a great employee benefit, many companies are now choosing to offer short-term income insurance, too. Although it only pays a percentage of your regular salary as opposed to 100% of your pay (like sick pay), it can last much longer. If you were sick or injured and needed to remain out of work for 4 to 6 weeks, what would you do? You might have sick leave for the first week or two, but after that you could be going without a paycheck for several more weeks. That’s where income insurance really makes a difference.
It can be used for virtually any medical reason, whether you’re out of work from an accident, a preplanned surgery, or maternity leave. Just be sure to ask about pre-existing conditions when you sign up. You may also get to choose how long you’d like your income insurance to last. Short-term options usually include 3 to 6 months of coverage, but you can also ask about long-term benefits that can provide payment(s) up to a year, 2 years, or even until age 65. Ultimately, this type of insurance is there for a disability or serious health condition, not your average sickness. While you may not be able to use it if you miss a few days because of a cold or the flu, it can make a big difference in your financial standing when you’re out of work for an extended period of time.
Income insurance usually comes as individual coverage, meaning, you can’t use it to care for others in your family if they’re unable to work. If you’re perfectly healthy, your income insurance won’t kick in. That’s why, an ideal employee benefits package offers both sick leave and income insurance. Even if your company doesn’t currently offer short- or long-term income coverage, we might be able to help.