According the Bureau of Labor Statistics, software developers and engineers are one of the fastest growing occupations in the US.
Software developers are the creative minds behind computer programs. Some develop the applications that allow people to do specific tasks on a computer or other device. Others develop the underlying systems that run the devices or control networks.
Many software developers work for computer systems design and related services firms or software publishers.
Software developers usually have a bachelor’s degree in computer science and strong computer programming skills.
In May 2012, the median annual wage for applications software developers was $90,060. The median annual wage for systems software developers was $99,000 in May 2012.
As a software developer or engineer, it is important that you protect your current and future income.
Here are some tips for protecting your income for both self-employed and engineers employed by a company:
For the self-employed developer:
If you are a self employed software developer or engineer, you most likely do not have access to any disability insurance. As such, it is important to seek a quality individual policy. Here are some things to look for in a disability policy:
- Noncancelable, guaranteed renewable. With this clause, it means that the premiums are locked in and guaranteed for the duration of the policy. Furthermore, the company can never modify or change your policy.
- Definition of disability. Look for a policy that covers you if you can’t work as an engineer even if you can work in another occupation or capacity.
- Increase options. This allows you to purchase more benefit in the future without having to go through further medical underwriting.
If you ever decide to work for a company, your individual policy is portable and you can continue to take it with you throughout your career.
If you work for a large company, chances are you will have a group disability policy in force. If so, you still may want to consider supplementing with an individual policy for several reasons:
- If the employer is paying the premium, the benefits to you are taxable.
- Most group policies have limits on how much benefit they will pay. As your income increases, the amount covered will decrease.
- Group policies tend to to have a total disability definition of disability which is more restrictive than an individual policy.
- If you leave your company, you will lose your group disability benefits. Having an individual policy will allow you the portability of your coverage and you can take that policy and adjust it according to your needs
For more information about disability insurance for software engineers or developers or to request a quote comparison, contact Set for Life Insurance today!