Disability insurance is one of the most ignored types of insurance that people do not buy. You might think that you are in great health and do not need disability insurance. However, disaster can strike without warning. Accidents do happen that could prevent you from working. In addition, the body is unpredictable, and disease or illness could suddenly attack.
What is Disability Insurance?
Disability insurance is an insurance policy that will cover much of your salary if you are unable to work. Money is necessary to live, so this type of insurance will give you some income. It basically protects you financially if you become disabled.
Why do you Need Disability Insurance?
You do not want to think about becoming disabled, but there are a …show more content…
Miscellaneous Expenses: If you are not receiving income, you cannot do the things that you enjoy. In other words, your quality of life would decrease. You cannot go out to dinner or rent a movie. You could not spend money on your family at Christmas time or for their birthday. It would be a very boring and stressful way to live.
Types of Coverage
There are basically two types of disability insurance coverage:
•Short Term Disability: This type of disability is coverage that does not last long, usually for about a year. If you are not able to work because of a disability, you need to return to work within that year. This is usually less expensive.
•Long Term Disability: Long term disability is insurance that will take longer than a year. You have a serious problem in which you cannot recover from within 52 weeks. Long term disability insurance usually begins after your short term insurance has expired. Some employers provide short or long term disability benefits. Other employers offer it as a payment option. It is a needed benefit if you do not want to go without income because of a disability.
Advantages of Disability …show more content…
You will need money to pay your monthly expenses, such as utilities, mortgage, groceries, etc. Having a paycheck could even prevent you from facing foreclosure. Normally, disability insurance is a percentage of your salary. The amount that you will receive depends on your type of insurance plan. It might be half of your income, or it could be up to 3/4 of your salary. Although it will not be all of the income that you are accustomed to receiving, it could keep your head above water during this difficult
What is Disability Insurance?
Disability insurance is an insurance policy that will cover much of your salary if you are unable to work. Money is necessary to live, so this type of insurance will give you some income. It basically protects you financially if you become disabled.
Why do you Need Disability Insurance?
You do not want to think about becoming disabled, but there are a …show more content…
Miscellaneous Expenses: If you are not receiving income, you cannot do the things that you enjoy. In other words, your quality of life would decrease. You cannot go out to dinner or rent a movie. You could not spend money on your family at Christmas time or for their birthday. It would be a very boring and stressful way to live.
Types of Coverage
There are basically two types of disability insurance coverage:
•Short Term Disability: This type of disability is coverage that does not last long, usually for about a year. If you are not able to work because of a disability, you need to return to work within that year. This is usually less expensive.
•Long Term Disability: Long term disability is insurance that will take longer than a year. You have a serious problem in which you cannot recover from within 52 weeks. Long term disability insurance usually begins after your short term insurance has expired. Some employers provide short or long term disability benefits. Other employers offer it as a payment option. It is a needed benefit if you do not want to go without income because of a disability.
Advantages of Disability …show more content…
You will need money to pay your monthly expenses, such as utilities, mortgage, groceries, etc. Having a paycheck could even prevent you from facing foreclosure. Normally, disability insurance is a percentage of your salary. The amount that you will receive depends on your type of insurance plan. It might be half of your income, or it could be up to 3/4 of your salary. Although it will not be all of the income that you are accustomed to receiving, it could keep your head above water during this difficult