| As a Federal Government worker, it is important that | | | | their FERS Disability benefits. Amongst the many |
| you understand the benefits provided to you by the | | | | options that are made available for Federal employees, |
| FERS Disability program. A proper understanding will | | | | there are some that are more attractive than others. |
| allow you to effectively assess the income protection | | | | As you consider purchasing individual Disability |
| you have and make an educated decision of whether | | | | insurance, look for two primary characteristics in a |
| or not you should obtain individual Disability insurance as | | | | policy. The first is to be sure that you are not restricted |
| a supplement to what you are already provided. | | | | to which policy provisions and riders can be added to |
| Without going too far into detail, Federal Government | | | | your policy. If you are going to spend money on |
| workers are provided Disability insurance benefits | | | | obtaining individual coverage to properly and effectively |
| through the FERS program once they have completed | | | | protect your income, be sure that you are not |
| 18 full months of service. For any injury or illness which | | | | restricted on what you can add to your policy. |
| restricts you from performing your current job and is | | | | Secondly, be sure that your individual policy benefits will |
| expected to last beyond one year, you are eligible to | | | | not offset with Social Security disability benefits. Your |
| receive 60% of your annual salary during the first | | | | FERS Disability benefits will already be off-settable |
| 12-months of a disability claim and 40% of your annual | | | | with Social Security Disability. It is bad enough that the |
| salary for each year thereafter. | | | | majority of your FERS benefits may offset with Social |
| Something that you may not know is that although you | | | | Security benefits but again, if you are spending money |
| are provided 60% and 40% Disability coverage, you | | | | in order to properly protect your income, you should be |
| may actually receive a substantially smaller benefit | | | | sure that you are not paying for Disability insurance |
| than you expect at claim time. Since FERS Disability | | | | that will be reduced as your FERS benefits are |
| benefits are primarily paid for by the Federal | | | | already. |
| government, any benefits you receive during a claim | | | | Purchasing individual Disability insurance as a means of |
| are taxable as ordinary income. Due to this taxation of | | | | supplementing the shortage that exists in your FERS |
| benefits, along with the reduction from 60% to 40% | | | | Disability coverage is a responsible and intelligent way |
| coverage, Federal government workers are faced | | | | of effectively protecting your income, your family and |
| with a tremendous shortage in income protection. Thus, | | | | your future. Be sure that you work with someone who |
| Federal workers are able to obtain individual Disability | | | | is familiar with the details associated with FERS |
| insurance as a supplement to their provided coverage. | | | | Disability benefits and also the individual options |
| Similar to how individuals in the private sector purchase | | | | available for Federal workers. For more information |
| individual Disability insurance to supplement their group | | | | relating to your FERS benefits, visit Disability benefits |
| Disability insurance, Federal government workers can | | | | for Federal Government workers. |
| also obtain individual Disability insurance to supplement | | | | |