Disability Insurance
From LoveToKnow Insurance
A disability insurance policy can provide you with benefits if you become unable to work due to an accident or illness. This type of insurance coverage is very important if you want to protect your current and future earning potential.
About Disability Insurance
Have you ever wondered what would happen if you were unable to work as a result of an accident or serious illness? Do you know what you and your family would do for money? If you had a disability insurance policy, you wouldn't have to worry quite so much.
Disability insurance is designed to provide benefits to a covered individual who is unable to work as a result of illness or injury. Though everyone is a candidate for this type of insurance coverage, it is estimated that only 15 percent of people in the United States have a policy. This is almost unbelievable when you consider the following facts and statistics supplied by law expert Frank Darras during a recent LoveToKnow interview:
- Disabilities affect one in five Americans.
- On average, 2,329 disabling injuries occur every hour during the year.
- A disabling injury occurs every eight seconds at work.
- Three out of ten working people between the ages of 35 and 65 will be disabled for 90 days or longer.
- The risk of disability is greater than the risk of death at all ages between 20 and 65.
- Half of the foreclosures in America are due to disabilities and a quarter of all bankruptcies are tied to serious injury or sickness
For these reasons alone, it is a good idea to consider purchasing disability insurance coverage.
Types of Disability Insurance
There are three basic types of disability insurance coverage that can help you replace a percentage of your income:
- Social Security Disability – Social Security benefits can be paid to workers if a disability is expected to last longer than 12 months. These benefits normally do not kick in very fast, and in most cases, the injury or illness that caused the disability has to be so severe that employment is simply not possible.
- Employer-Paid Group Disability – In some states, employers are required to provide some sort of group disability insurance. This coverage many be short-term and/or long-term. While these policies are better than nothing, they may not offer you the level of benefits you need. Employer-paid group policies may also have firm restrictions and exclusions.
- Individual Disability – An individual disability policy can replace a specific percentage of your income if you are unable to work. This type of disability policy typically provides the best coverage and benefits.
Buying a Disability Policy
As with any other type of insurance, it is a good idea to shop around before buying a disability insurance policy. You can talk to your current auto, home, or life insurance provider to see if they offer disability policies. You may also want to contact your state's insurance department to get the names of companies who sell this type of coverage in your state.
The premium that you pay for disability insurance will vary depending on who you purchase the policy from and the type of policy you buy, as well as your age, gender, occupation, and health status. To save money on your premiums, you can elect a shorter benefit period or a longer benefit waiting period. However, you will want to be careful if you decide to do this. If you become disabled, you may need to receive your benefits as soon as possible. A longer waiting period could cause serious financial problems.
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This page has been accessed 902 times. This page was last modified 00:31, 12 October 2007.
© 2006-2009 LoveToKnow Corp.
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