“What you need to know about disability insurance
If you become disabled because of illness or injury and can’t work, you could have a hard time paying your bills and supporting your family. Though there may be government help, it might not be enough. That’s why it can be a good idea to have an insurance policy that protects you against such a scenario.
What is it?
Disability insurance is a kind of insurance that provides you income if you become disabled and can’t work. The insurance is often offered through your employer as part of a voluntary benefits program, which allows you to take advantage of group rates and get a lower premium than if you buy it on your own. Disability policies usually pay you anywhere from half to two-thirds of your pre-disability income.
Who is it for?
Disability policies often make sense for people who have dangerous jobs where disabling injuries are common, such as construction workers. However, disability policies are a good idea for anyone, because they often cover you for injuries and illnesses that may not be job-related.
How does it work?
A disability policy will kick in once you have been certified to have a disability that will keep you from working. You likely have to exhaust any other programs before your disability policy will kick in. When your disability has been certified, you will start receiving monthly payments for the amount and duration specified in the policy.
Types of coverage
There are typically two types of disability insurance: short-term and long-term. Short-term policies pay you for disabilities that are temporary and prevent you from working for a few months while you recover. Long-term plans pay you if your disability prevents you from working at all.
The major benefit of a disability policy is that it replaces a chunk of your income for you when you can’t work. Though a workplace accident might get you a legal settlement that helps pay your bills, if you have a stroke or some other non-work-related incident, you’ll get nothing. That’s where a disability policy can really make a difference for you.
Good Disability Insurance
Should you face disability due to an illness or injury and you can’t work, you would likely have a struggle to pay your bills and to support your loved ones. Though the government might help some, it is frequently not enough. This is why having an insurance policy that safeguards you from such a scenario can be vital.
Disability insurance is a type of insurance coverage that provides you with income should you be disabled and unable to work. It is often offered through your employer as part of a benefits package, which enables you to take advantage of reasonable group rates to get a lower premium. Disability insurance usually pays out anywhere from one-half to two-thirds of your pre-disability pay.
Disability policies are often most applicable for those who have dangerous jobs where such injuries are common, like those in construction or other risk inherent jobs. Keep in mind though that disability policies are valid options for just about anyone as they can often cover injuries and illnesses that may not be related to a job.
A disability policy will be activated once you have been diagnosed with a disability that keeps you from the workplace. Note that you likely first will have to exhaust any other coverage before your disability policy will start to work for you. When your disability has been approved as covered, you will begin to receive monthly payments in the amount of and for the period of time specified in the policy.
There are usually two kinds of disability insurance. The first is short-term policies, which compensate you for disabilities that prevent you from working for just some months before you are recovered. Long-term plans pay out for longer periods and even until the policyholder passes.
The big plus of a disability policy is that it replaces a large portion of your income when you are unable to work. A workplace accident can result in a legal settlement that assists you in paying your bills, but if you have a stroke or some other non-work-related issue, you’ll get no help. This is why disability policies were designed in the first place.