These are the benefits people sign up for in five seconds and never think about again. A few minutes now can matter a lot later.
Group life insurance
- Basic life is often employer-paid — commonly one to two times your salary, or a flat amount like $25,000–$50,000. It's a good start and rarely enough for a family on its own.
- Supplemental life is extra coverage you buy through payroll. Small amounts usually need no health questions; larger amounts may require a health statement.
- It's tied to your job. When you leave, it generally ends, though you may be able to convert or "port" it — at a higher price and usually within 31 days.
- Beneficiaries. The single most important field. It overrides your will. Review it after any marriage, divorce, birth, or death.
Short-term disability (STD)
Replaces part of your paycheck — often 50–70% — when you can't work for a limited time due to illness, injury, or childbirth recovery. Typical features: a short waiting period (around a week), benefits for up to 3–6 months, and a doctor's certification. Pregnancy and delivery recovery are the most common claims.
Long-term disability (LTD)
Picks up when STD runs out — often after 90 or 180 days — and can pay for years, commonly 50–60% of salary. Two things to understand:
- "Own occupation" vs. "any occupation." Many policies pay if you can't do your job for the first two years, then only if you can't do any job. That switch matters.
- Taxes. If your employer pays the premium, benefits are typically taxable. If you pay with after-tax dollars, benefits are typically tax-free. Some employers let you choose.
Quick decisions worth making
- Confirm your life beneficiaries today.
- If you have dependents, price supplemental life during Open Enrollment while it's cheap and easy.
- Read your LTD's definition of disability and its waiting period once, so you know before you need it.
- Keep the benefits summary somewhere your family can find it.