Disability Insurance
When most people think about insurance, they mostly think about car insurance, homeowners insurance, life insurance, and of course, health insurance. But there is another form of insurance that is often overlooked, yet just as important - disability insurance. Disability insurance is an insurance policy that pays a portion of an individuals salary in the event that the individual is unable to work due to a disability or illness.
Most people are aware of Social Security Disability Insurance, which is a form of social insurance funded by the payroll taxes of US workers. However, Social Security Disability Insurance is a last resort, as it is intended to provide only basic living expenses in the event of a disability. It is not enough to sustain an individual over a long period, and it takes several months to receive the benefits.
Private disability insurance is, in many ways, a better option than Social Security Disability Insurance. For one thing, it pays a much larger percentage of a person’s salary than Social Security, as much as 60-70%. And, unlike Social Security Disability Insurance, payments are usually made within 30 days of a claim, which may be crucial if a person is facing financial hardship due to a disability.
Whether you choose to purchase private disability insurance or not depends on a number of factors. It is important to consider your career and lifestyle. If you have a job that is more physically demanding and more likely to lead to a severe disability, it is wise to invest in disability insurance. Those who are self-employed are particularly advised to purchase disability insurance, as Social Security Disability Insurance will not provide coverage for those who are not employed by a company.
It is also important to take into account your age, health, and family situation. This can help you determine the type of disability insurance you will need. If you are young and healthy, it may not be necessary to purchase a policy that covers long-term disabilities. However, if you have a family to support and are in a position where a disability would cause significant financial hardship, then a disability insurance policy with a long-term disability rider is a wise investment.
When deciding on which disability policy to purchase, it is important to do your research. Take the time to compare policies and find the one that is best suited to your needs and budget. It is also important to read and understand the policy’s terms and conditions, as well as any exclusions or limitations. Finally, make sure to read and understand the claim process and the benefits you are entitled to in the event of a disability.
Overall, disability insurance is an important form of protection and can be a lifeline in the event of an unexpected disability or illness. Knowing you have a policy in place to protect your income if you are unable to work is critical, both for you and your family. So take the time to research your options and find a policy that meets your needs and budget. Having disability insurance provides peace of mind and a sense of security during uncertain times.
