Why Disability Insurance Because Your Chances Of Becoming Disabled Are Greater Than Your Chances Of Dying

Why Disability Insurance? Because Your Chances of​ Becoming Disabled Are Greater Than Your Chances of​ Dying.
If you​ and your loved ones depend on​ your salary for support,​ then you​ probably need long term disability income insurance.
Think about it​ if​ you​ were to​ become disabled,​ even for a​ few months,​ how would you​ and your family manage? Who would pay your bills? Disabling illness or​ injury is​ one of​ the​ leading causes of​ bankruptcy in​ the​ United States.
Most people do not realize that their chances of​ becoming disabled are greater than their chances of​ dying prematurely. Yet they are more likely to​ buy life insurance than disability insurance. For this reason,​ people in​ the​ insurance industry call disability the​ forgotten risk. According to​ statistics from the​ Journal of​ the​ American Society of​ Chartered Life Underwriters,​ if​ you​ are age thirty to​ fiftyfive,​ your chances of​ becoming disabled are two to​ three times greater than your chances of​ dying.
If you​ are thirtyfive years old,​ you​ have a​ 5050 chance of​ experiencing a​ disability lasting last three months or​ longer before you​ retire. One in​ seven workers will become disabled for more than five years before he or​ she reaches age 65.
Many people mistakenly believe that the​ government or​ Workers Compensation will pay them an income if​ they become disabled. Actually,​ more than 80% of​ the​ people who apply for Social Security disability benefits are rejected. Social Security does not pay benefits for partial or​ shortterm disability. Your disability has to​ either last a​ year or​ be expected to​ last a​ year before you​ can collect Social Security. Workers Compensation pays only if​ you​ were injured on​ the​ job and benefits are often limited to​ a​ few years.
Your health insurance will cover your hospital,​ doctor and other medical bills,​ but you​ will still not have a​ salary. Longterm care insurance only covers bills from nursing homes or​ assisted care center. Disability insurance,​ however,​ does not pay bills. Instead the​ insurance company gives you​ money on​ a​ regular basis. it​ is​ designed to​ replace your salary so that you​ and your family will not experience financial hardship during any period when you​ are too sick or​ injured to​ work.
What should you​ look for when you​ are buying long term disability insurance? First,​ the​ insurance company itself should have a​ top rating from Moodys,​ A. M. Best,​ and Standard and Poor. These agencies rate companies in​ terms of​ capitalization,​ growth,​ earnings and other indicators of​ financial stability.
Secondly,​ you​ should make sure you​ understand the​ terms of​ your policy. Some policies require a​ waiting period before you​ start receiving benefits. For example,​ your policy may have a​ sixmonth waiting period before benefits are paid. in​ this case,​ your benefits would begin six months from the​ time of​ disability.
The waiting period is​ often called the​ elimination period. Choices usually range from 30 days to​ 720 days.
Look for a​ waiver of​ premium provision. This means if​ you​ become disabled,​ you​ will not have to​ keep paying for your disability policy.
What are the​ conditions for renewing the​ policy? if​ youre policy is​ not automatically renewable,​ the​ insurance company has the​ right to​ cancel it.
Payment period options are another consideration. Some policies will only pay for a​ certain period of​ time,​ sometimes for only two years. Other policies last a​ lifetime. the​ most popular policies pay benefits until you​ reach retirement age,​ when you​ can begin to​ collect Social Security payments.
Most policies have a​ residual disability clause. if​ you​ suffer a​ disability,​ very often you​ will return to​ work parttime at​ first. or​ because you​ were off work for a​ while,​ it​ may take you​ time to​ build your business back to​ the​ level it​ was before you​ became disabled. Your insurance should provide income for both these scenarios.
Check over the​ policy for a​ recurrent disabilities benefit. a​ recurrent disability is​ one that happens after you​ recover from your original disability. Your insurance should waive a​ new waiting period and/or not require proof that the​ two disabilities were related.
When you​ buy disability insurance,​ you​ buy it​ according to​ your income level. the​ more money you​ make,​ the​ larger the​ benefit of​ your policy. But you​ also have to​ figure that your income will rise as​ you​ get older. For this reason you​ want a​ future increase rider or​ automatic increase rider. These riders allow you​ to​ keep your policy but increase the​ amount of​ your benefits based on​ your increased earnings as​ you​ grow older.
When you​ buy your insurance,​ certain factors will affect your price. you​ will pay less for the​ insurance if​ you​ decide to​ replace 50% of​ your income instead of​ 80%. you​ also pay less if​ you​ opt for a​ longer elimination period. the​ insurance company factors in​ your current health and may exclude preexisting conditions. Women and smokers may pay more for disability insurance because they make more claims than nonsmoking males. if​ you​ are in​ a​ highrisk job,​ your policy may cost you​ more.
Disability insurance policies can be confusing. it​ is​ always best to​ sit down with a​ professional insurance agent to​ discuss the​ terms of​ the​ policy together and to​ ask questions until you​ completely understand the​ details of​ the​ policy quotes being presented.

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