How Does Disability Insurance Work?
Many people consider disability insurance for accidents, but many disabilities can result from diseases.
Learn how this lesser-known disability insurance coverage can protect your income, and your family, if you become unable to work.
What is Disability Insurance?
Disability insurance is a financial protection insurance that pays you a percentage (typically between 50% and 70%) of your income if you become unable to work for a reason the policy covers.
Be sure you get disability insurance that covers a broad range of situations that may arise, and check it before you sign up to be sure. Some policies don’t cover self-inflicted injuries or mental illness and you need to know that up front.
The best disability insurance policies provide benefits when you can’t work at your own occupation. By comparison, an any-occupation policy could require you to work at a different job that can accommodate your disability, then partially make up the difference.
One option is to get disability insurance through a group, such as your employer or professional organization. This coverage is typically the most affordable and may not require medical underwriting, but you could lose it if you change employers.
The other option is to purchase an individual policy. This coverage often costs more and does require medical underwriting, but you can keep it no matter where you work as long as you pay the premiums.
How Does Disability Insurance Work?
When you first sign up for a disability insurance policy, there is typically a waiting period before it goes into effect.
During the first month or more of your disability, you may not receive any payout from the policy, so it’s important to have emergency savings.
After that, you will receive a regular income from your policy until your disability ends or your benefits run out, whichever comes first.
Should I Buy Disability Insurance?
If you don’t have the financial resources to support yourself and any dependents for the rest of your life if you get into an accident or unexpectedly get a long-term disease and can’t work, it’s a good idea to carry disability insurance.
We can help you understand your existing coverage or get quotes for an individual policy—just ask!
Quality Choice Insurance Agents Can Help you Navigate Your Choice for Disability Insurance to Make the Best Decisions!
Contact us today to discuss your options, get answers to questions and make the right choice for you and your family.
