3 Things You Need To Know About Disability Insurance

There are a lot of things people generally know they need to insure, like their wedding rings, their car or their life. Things that really matter or cost a lot of money are generally what get insured. Many do not realize or think about the importance of disability insurance – the insurance that protects you in case you are no longer able to work and earn money for yourself and your family. It is a heavy thought that most do not want to worry about, but it’s important to think about and consider disability insurance and what it would mean for you. The following list of things you need to know about disability insurance will hopefully give you the basics and get you started on your search.

1. Why Disability Insurance Is Important

There are a few key reasons why you might want to buy disability insurance. One would be that almost one in every four 20-year-olds will end up with a disability and not be able to work at some point before they are 67. Another thing to consider is if you would not be able to miss out on a few months to a year of income because of an injury or unexpected disability without financial ruin. You may want disability insurance so that you can rest assured that you will be covered in the event of even a short period of inability to work. Also, Social Security is often thought to be a solid benefit program to lean on in case disability sets in. But the fact of the matter is that many people are denied for little things, and it is a difficult process to prove disability and qualify for this government safety net. Once you actually do get it, it may not even be enough for you to get by since most disability payments are less than $1000 per month.

2. Where To Get Disability Insurance

One of the best places to start when looking at disability insurance is Murphy Insurance Agency – because they will help you by evaluating how much coverage you currently have and what it would mean if certain accidents happened. They will also show you how you can add to your current plans to make your coverage more substantial in the event of needing disability insurance. They will bring up the relevant issues, and possible outcomes that will help you find the best disability insurance to keep you covered in a time of need. Another great option with fantastic reviews is The Hartford – where many clients have posted reviews so you can read about other peoples’ experiences with short and long term disability insurance coverage’s. They stress that workers’ compensation does not cover nonwork-related disabilities and make sure you are still covered no matter what happens. Their coverage is wide and includes anything from back issues and illness to childbirth. They are also flexible in the amount of your paycheck you prefer to protect in order to give you a quote that fits your needs and your budget. Northwestern Mutual – is definitely a big name in the life insurance game. They are well rated for their stability and reliability as well as their ability to provide high-quality plans and customer service. Their advisors will help you find a plan that can be fit into or added to any group disability plan that you may have through work or other insurance policies whether they are long or short term. The policies they have are portable, and you can take them with you no matter where you are currently working. They also give you the option to pay premiums with after-tax dollars in order to make sure you receive benefits that do not need to be taxed.

3. Kinds of Disability Insurance

The main types of disability insurance that you will want to take a look at are Own Occupation, Any Occupation, Long-Term, and Short-Term. Own Occupation insurance is what will cover you if you become unable to work in your specific occupation. This type of disability insurance is beneficial for people who are still able to work in some way but not in the occupation they choose to be covered in. People with high-ranking and lucrative types of work will tend to want this type of insurance since it is more of a liability to lose those types of jobs and wages. Any Occupation is what will cover you in the event that you are absolutely unable to work at any job at all. This one is more beneficial for severe disabilities, and it is less expensive because it clearly does not cover nearly as much as Own Occupation. If you are unable to do your own job but can physically do any other kind of job, you will not get covered. Short-term disability insurance is usually a plan that is part of a work or group plan and usually requires workers to use up all of the sick day allowances before it can kick in and start paying out. The premiums can be paid by the employee or the employer and in some cases, they can split the cost. Short-term disability insurance tends to cover an individual anywhere from 10-26 weeks and can cover approximately between 50 and 70 percent of their salary each week.

Long-term disability insurance is what helps to replace a portion of your income when you are unable to work full time or at all because of a disability. This kind of disability insurance policy can be purchased through your work plan or on your own, depending on the amount of flexibility you want to have. Many people find themselves needing to buy Long-term even if they are not permanently disabled since they may run the risk of running out of sick days and their Short-term disability as well. Certain kinds of Long-term policies will let you set an amount of years that you need coverage or a certain age. Many people tend to have it end when they hit retirement age since retirement payments will start then, and they feel that they no longer need disability insurance on top of that.