Disability Insurance

Of the many types of insurance, disability insurance is most often overlooked, but it can make a tremendous difference to a family’s comfort and status if an injury to the breadwinner in the family occurs unexpectedly.

What Exactly Is Disability Insurance?
This type of insurance provides coverage for individuals who have suffered an injury that prevents them from working. It ensures a regular income during the process of recovery from the illness or injury. Sometimes, employers provide this type of insurance, but the covered amount may be increased by the policyholder, to ensure sufficient income for the worker’s family needs.

Who Gets This Type of Insurance?
Although many consumers believe that only those who work at hazardous jobs require insurance for disability, anyone can experience a severe injury that requires months of rehabilitative treatment and a lengthy absence from work. Some people may be statistically at higher risk for injuries, such as those who have a long, daily commute to their jobs. Individuals who are self-employed may also want coverage for disabling injuries.

How Does It Work?
Most disability policies pay benefits on a regular basis, much like a paycheck. A policy generally supplies 45 to 65 percent of the person’s gross income. However, consumers can find many different types of policies that may pay a variety of amounts. The policy is paid for with scheduled premiums like other insurance.

Types of Coverage
Long-term disability coverage usually begins around six months after the injury and may continue for two years or more. Short-term coverage generally starts a few days after the injury and continues for up to six months. What type of insurance you choose depends on a number of factors, including age, type of work and family situation.

Benefits To Insured
When a disabling accident does occur, the person is able to concentrate fully on getting healthy without the constant worry of financial strain. Families are more secure and can continue their usual lifestyle without stressful changes that can disrupt children’s educations and social connections. These benefits make disability coverage a useful addition to the financial planning of every family.