Simple Guide To Disability Insurance For Your Family

The most valuable asset we have is not the homes and cars we own but our ability to work and make a living. If you can’t work, you will never be able to buy any asset or sustain your life.

Unfortunately, no one knows what tomorrow has for him or her. Things do happen unexpectedly. You don’t know what will happen to you tomorrow.

Do you know the more you’re growing old, the higher the risk of disability? According to statistics, people above 50 years are four times likely to suffer from a disability.

Today you might be in your 20s or 30s, but it is the right time for you to start investing for your future. Investing does not always mean buying a home, a car, and starting businesses.

Disability insurance is what you need. It pays your bills when you’re unable to work either due to an injury or illness. The most valuable asset we have is not the homes and cars we own but our ability to work and make a living. If you can’t work, you will never be able to buy any asset or sustain your life.

Unfortunately, no one knows what tomorrow has for him or her. Things do happen unexpectedly. You don’t know what will happen to you tomorrow.

Do you know the more you’re growing old, the higher the risk of disability? According to statistics, people above 50 years are four times likely to suffer from a disability.

Today you might be in your 20s or 30s, but it is the right time for you to start investing for your future. Investing does not always mean buying a home, a car, and starting businesses.

Disability insurance is what you need. It pays your bills when you’re unable to work either due to an injury or illness. If you are relying on a paycheck, you need this cover.

Why you need disability insurance for your family

Chances of being unable to work for several months or even years because of an injury or illness may seem to be low because right now you’re healthy, and working on a desk. Remember what the Social Security Administration found out, more than 25% of youths in their 20s are likely to experience a disability for three months or more before they reach 67 years old. You never know what tomorrow has for you. You might be among the 25%.

You depend on a paycheck right now. There might come a time you won’t be able to work. Who will pay your bills? An insurance disability plan will be there for you.

Types of disability insurance

There are two types of disability insurance – the long-term and the short-term. Both replaces a portion of your basic monthly salary when you’re unable to work.

1. Short-term disability insurance

They pay out for less than one year depending on the policy and replace sixty to seventy percent of your basic salary. You start getting benefits after two weeks of your disability.

2. Long-term disability insurance

Unlike short-term disability insurance, they payout until the disability ends and replace forty to sixty percent of your basic monthly salary. You start getting the benefits after three months.

Tips for getting disability insurance

You can have your employer pay for your disability insurance or buy your own disability policy. Some states require employers to provide their employees with disability benefits. If you live in New York, New Jersey, California, Hawaii, and Rhode Island, the society for Human Resource Management requires your employer to provide you with short-term disability benefits.

1. Buy insurance coverage via your employer’s insurance broker

Your employer may not pay for disability coverage, but it might offer you a voluntary benefit. In such a case, you should join hands with other employees and buy coverage via your employer’s insurance broker at a group rate.

2. Disability insurance in professional associations

Are you in any professional association? You need to join one. Many professional associations have members’ disability insurance coverage at a group rate.

3. Buy an individual disability insurance plan

You can get individual disability plans from a broker or an insurance company. When buying your own cover, you should choose an insurance company with the best offers in the market and customize your coverage with features like annual cost-of-living adjustments.

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