Why Disability Insurance?
Disability insurance is, arguably, the best way you can replace any lost income should you become hurt and be no longer be able to work. In discussing this with a licensed insurance agent, you’ll likely be pleasantly surprised at the various riders you could be missing out on without good disability insurance coverage.
The Kinds of Coverage
The two types of disability insurance protection come in the form of short-term disability coverage and long-term disability coverage. There is a myriad of helpful benefits provided in each of these policy types that are engineered for protecting policyholders from the many disability conditions that may arise.
Short-Term Disability Protection
The variation is utilized to replace any lost income (up to 80% or more) for shorter periods of incapacity. Varying with each policy, the duration is normally from 60 to 180 days of coverage. For example, if you face a major surgical procedure and are told by doctors that your recovery may take just a few months, then good short-term disability coverage is the best way to help in replacing any lost income. There is an upfront requirement of a short elimination period of approximately 10 days before the coverage is normally actually activated. Each state may have different and unique requirements for state-run policies as opposed to the kinds offered by private insurance providers.
Long- Term Disability Protection
Life can throw us curves, so if your short-term policy ends but you’re still not able to work, it would likely behoove you to consider buying long-term disability insurance coverage. This variation usually begins to provide benefits when you’re unable to resume work for a longer term, beyond the aforementioned 180 days. Long-term disability coverage can cover up to 60% of your prior salary, which is less than the typical short-term payouts, but this coverage can last for years. (In some cases, determined by the kind of policy you obtain, it can stay in effect even for the remainder of your life.)
Many erroneously believe that employers or the government will provide them with disability coverage. However, nothing could be further from the truth. Note that a few states mandate that employers provide their employees with disability coverage, which can go a long way in addressing this issue. State workers’ compensation insurance packages can help employees who get hurt while on the job. Now is the time to discuss these issues with your insurance professional to ensure that, should the unexpected happen, you and your family are financially protected.