FERS - Disability Insurance For Federal Government Employees

It is all too often that I hear Federal Governmentfair to say that most people cannot survive on
employees speaking of how great their benefits are45-50% of their regular income. 
because they work for the Federal Government. InThe FERS program takes this shortage of coverage
some ways they are correct - the Federaleven further. It works very similarly in that 60% of
government does provide high quality benefits for itsyour annual income is covered, but only for the first 12
employees and in most cases they are very wellmonths of a disability claim. After the first 12 months,
taken care of. In regard to their group Long-Termyour benefits will drop to 40% of your income. Once
Disability insurance however, the Federal Employeeagain, I believe it is fair to state that most people
Retirement System (FERS) program falls short of theircannot survive on 40% of their regular income.
elite reputation. There are many details associated with the FERS
Traditionally, group Disability insurance will cover 60%Disability insurance program and as a Federal
of a person's salary up to a maximum monthly benefitemployee you should take the time to fully understand
of $6,000 - $10,000. If the employer pays thethem. If you are serious about protecting your income
premiums, benefits are received on a taxable basisand the future of your loved ones, you need to
and will be considered ordinary income. With benefitsunderstand the coverage you have so that you can
being taxable, even someone who has groupobtain an individual policy to cover the gap in your
coverage like this can experience a severe shortagecoverage. You can learn more about the specifics of
of income if they become disabled. When 60% ofthe FERS Disability program by visiting Disability
your salary is provided on a taxable basis, it is theInsurance Resources  and selecting "Disability
equivalence of having 45-50% coverage. I think it isInsurance for Federal Employees".