How Important Is Disability Insurance For You?
Have you ever considered the possibility that you may not be able to work for a while to earn a living? What happens if you find yourself in a position when you are temporarily forced to quit your job because of an unforeseen accident? This sounds preposterous to a young, healthy employee but it can become a reality. In such a situation, getting disability insurance quotes can be your lifesaver.
Disability insurance will offer earnings for an individual who cannot work because of some illness or injury. Without this coverage, employees and their families would have nowhere to turn to for financial support; they would end up losing everything they ever owned. Incidentally, an average disability claim can last up to 13 months, but strangely, more than 2/5th of full-time employees have no such coverage to protect themselves if they were to lose their income. Research shows that almost a third of US workers will have faced disability for at least 3 months at some point of time in their lives, but disability insurance is still not a priority.
Why should you reach out to disability insurance services?
For those whose lives depend on paychecks from employers, disability insurance is a must. To get quality disability coverage, you must buy these individually from a reputed disability insurance broker. Some employers extend this coverage for their employees but this is typically short-term, capable of replacing only a portion of the employee salary. Disability insurance is essential for those who are self-employed or those who cannot access employer-paid sick leaves. Experts recommend buying a policy for replacing about 2/3rd of an employee’s monthly earnings. You will find that insurance carriers will not usually offer more than this; else it can be counterproductive, dissuading employees from resuming work.
The cost of physician disability insurance is impacted by two key factors, namely, how disability is defined and the elimination period. If you choose “own occupation” policies, these are costlier since they are activated when you cannot do what you have been trained for. “Any occupation”, on the other hand, will define “disability” as the inability to do any kind of job. The elimination period refers to the total number of days that you have experienced the disability before the payment of benefits. So, if the elimination period is longer you have to pay a lower premium.
The truth is whenever you hear of disability insurance you immediately think of worst-case scenarios; things that you never think can happen. The outcome is that most people are ignorant about how you can become eligible for such coverage, what types of disability insurance you can get, and resources that can help you apply for it. At a time when Covid-19 has impacted our lives in ways that we could not imagine, it is time to realize the importance of planning for the unthinkable. This is where disability insurance comes in; it is a way to protect yourself, your loved ones, and your income.
Disability companies are needed not only to cover costs pertaining to an injury or disease; it is protection for your earnings. To choose the right coverage you need to understand what long-term and short-term disability insurance is. LTD policies will replace almost 60% of one’s income if he cannot work anymore while STD will replace about 40%-70% of one’s income for about 13-26 weeks. You can buy long-term policies from a financial advisor or broker while short-term disability policies can be got as group policy benefits through employers.
