Looking for companies that offer disability insurance? If you get injured or too sick and can’t work anymore, disability insurance will replace your income. Consider factors like availability, coverage limit, price, and time to wait before you choose which insurance company is the best. What are the types of disability insurance? What are some of the reasons why you should consider disability insurance? Where can you find this kind of coverage?
There are two types of disability insurance including:
1. Short-term disability.
The policy offers coverage for 6 months or less. This benefit comes with being employed.
2. Long-term disability.
Coverage takes more than six months. It can provide you coverage until you get to retirement age.
Depending on your policy, long-term disability insurance is more advantageous as it starts to work 60 or 90 days after you become disabled. Many insurance companies are offering this policy to employers and those who seek to get personal coverage.
Reasons to consider disability insurance.
1. Disabilities are unexpected but common.
The chances of being disabled before retirement age are higher than what people think. Health conditions that are common in long-term disability claims include cancer, musculoskeletal disorders, arthritis, heart disease, and back pain. Protect your future income by always being prepared for the unexpected.
2. You are the breadwinner.
To take care of your family, you should make financial decisions by preparing for what could go wrong.
3. Coverage from work is insufficient.
Your employer may provide disability coverage. This option may be inexpensive but not enough. This type of coverage considers only the base salary and is taxed hence not fair to high-income earners. Your employer may decide to cancel your claim also if you get fired you will lose it too. Depending on your total net income, individual disability insurance allows you to get a higher benefit amount. Benefits are not taxed.
Ways to find disability insurance coverage.
- It is usually limited and the employer may allow you to purchase more coverage at a discount. Figure out what the employer offers and explore employee benefits.
- Social security administration.
It provides benefits for:
- People who can get supplemental security income.
- People who won’t be able to work for at least one year.
It doesn’t replace much of the income but being eligible is hard.
Private insurance company.
It is expensive and covers a higher percentage of your income.
Disability insurance is a form of financial security as it replaces your income when you are not working anymore due to a medical condition. Short-term disability and long-term disability are the types of disability insurance present. The benefit you get is a percentage of your income. In your financial plans, you should consider disability insurance since a disability can happen at any time. Consider obtaining disability insurance because you are the breadwinner, disabilities are unexpected but common, and coverage from work is insufficient. You can get covered through your employer, social security administration, or private insurance company.