NJ Disability Insurance

New Jersey disability insurance offers three different programs for income protection for its workers: state insurance, approved private insurance, and the Disability During Unemployment program. The State of New Jersey is proud that it is one of only five states that provide disability insurance for its citizens. Although it does not operate the private employer plans, New Jersey does regulate them.

The Temporary Disability Benefits Law allows employers to set up coverage for their employees from private carriers. The plans must be approved by the state, and must be insured by the employer, an insurance provider, or a union fund. This means that these plans vary from employer to employer, so the wage earner should check the group plan carefully.

Insurance Equal to the State Plan

Whatever the policy's provisions, and whatever the source of the funding, the private plan must be as generous as the state plan. You, the employee, may have to contribute to the cost of the private plan, but, again, you cannot be charged more than you would under the state plan. For 2003, the maximum employee contribution was set at $119.50.

Although the New Jersey disability insurance department oversees these private plans, and must pre-approve them, the department does not determine eligibility, benefits, or claims procedures. These operational aspects are run by the private plan provider. Care must be taken by an employee to send a claim to this private provider; it it is sent to the state, it will simply forward the claim to the provider, and your benefits will be delayed.