To tell us how big its benefits are due to federal government employees working for the federal government is what I frequently hear. In some respects they are right - the federal government provides high quality profits to employees, and in most cases they take care very well. However, with regard to their group long-term disability insurance, the Federal Employee Retirement Program (FERS) program does not reach their elite reputation.
Traditionally, group disability insurance covers 60% of salary of up to $ 6,000 to $ 10,000 per month. If the employer pays the insurance premiums, the benefits will be received on a tax base and considered as current income. Because benefits are subject to taxation, even people with such group coverage may experience serious lack of income when becoming physically handicapped. If 60% of your salary is provided on a tax base, it is equivalent to having a coverage of 45-50%. I think it's fair to say that most people can not survive in 45 to 50% of normal income.
The FERS program further overcomes the shortage of this coverage. 60% of your annual income is covered, but it is very similar only during the first 12 months of disability allegation. After the first 12 months, benefits will be reduced to 40% of revenue. Once again, I think it is fair to say that most people can not survive in 40% of normal income.
There are many details related to FERS 's disability insurance program, as federal employees, you should take time to fully understand them. If you are serious about working with your income and protecting the future of your loved ones, you have to have separate policies to cover your coverage gap We need to understand the coverage. For details of the FERS Disability program, please refer to FERS Disability Insurance for Federal Employees.
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