One of the types of insurance that most people overlook or do not choose is disability insurance. If they understood what a difference that it can make if they are hurt or ill, then they would. This insurance can make all the difference if the breadwinner is not able to work, which is why it is essential that it be in your insurance portfolio.
Disability Insurance Explained
People who have been injured or who are not able to work due to illness often find themselves in a bad position financially. Disability insurance keeps the familys financial situation taken care of if the main income earner is unable to work. While some employers offer disability insurance, it may not be enough income to take care of the family, which is why you may want to consider a policy of your own.
Who Needs Disability Insurance?
Many people think that only those who work in dangerous jobs need disability insurance, but anyone can be injured severely enough that will take months of treatment and a prolonged time off of work. While it may be true that some jobs are more risky, even those who are self-employed or work at home need to have disability insurance to ensure that the family can live in the same way if they are not able to work.
The Basics of Disability Insurance
This type of insurance pays out on a regular basis, sort of like a paycheck does on a regular schedule. It normally pays 45 to 65 percent of the insureds gross income, but there are different types of insurance that pays different amounts. Scheduled premiums are paid just as with any other insurance policy, and failure to pay may cause the coverage to be cancelled.
Disability Coverage Types
Disability is either short-term or long-term. The short-term coverage begins within days of you not being able to work and can continue for 6 months. Long-term coverage starts at 6 months and goes up to 2 years. The policy that you decide on will be determinant on several things, including family situation, your occupation, and age.
Disability insurance offers much more than a regular income coming in. It also takes the worry and stress out of missing work, allowing the injured to focus on healing and recovery.