Why Should You Get Disability Insurance

Why Should you​ Get Disability Insurance?
The American Council of​ Live Insurers estimates that one third of​ all adults between the​ ages of​ 35 and 65 become disabled for a​ period of​ 90 days or​ more,​ and one in​ seven workers will become disabled for more than five years.
Can you​ afford to​ live and take care of​ your family for 3 months or​ 5 years without income? Probably not! Many people wrongly believe that longterm disability is​ usually a​ result of​ a​ major accident or​ some rare cause,​ but the​ reality is,​ most adults become unable to​ work due to​ illnesses like heart disease or​ cancer.
Becoming disabled or​ otherwise unable to​ go to​ work causes a​ loss of​ income so devastating to​ most families that it​ is​ the​ reason for 46% of​ all home foreclosures,​ according to​ statistics provided by the​ US Department of​ Housing and Urban Development.
What is​ Disability Insurance?
Disability insurance provides coverage for when you​ are unable to​ work due to​ injury or​ illness. it​ will replace a​ portion of​ your income if​ you​ become disabled and cannot work. Many employers offer group disability insurance policies,​ and will generally replace 60% of​ your current salary. you​ can purchase a​ supplemental individual disability insurance policy to​ cover up to​ 70% or​ 80% of​ your salary. if​ you​ pay for your disability insurance yourself your employer does not pay for it​ it​ is​ taxfree.
EmployerOffered Group Disability Insurance
Around half or​ more of​ all medium to​ large sized businesses offer long term disability insurance. Even if​ you​ are lucky and have the​ policy,​ you​ might consider purchasing a​ supplemental plan to​ increase the​ percentage of​ income you​ can receive under the​ policy if​ you​ ever need to​ use it.
Group plans will insure your regular salary never bonus amounts,​ and there is​ a​ benefit cap of​ $60,​000 per year. the​ amount you​ receive is​ also reduced based on​ other benefits you​ might receive,​ like social security benefits. if​ you​ make a​ decent income in​ terms of​ bonuses or​ earn a​ salary in​ the​ six digits you’re going to​ want to​ consider purchasing supplemental disability insurance to​ increase the​ amount you’d receive if​ you​ need to​ claim.
Individual Disability Insurance
For individuals who are self employed or​ who want to​ supplement the​ coverage they receive under their employers group disability insurance plan,​ you​ can purchase your own disability insurance. For high salary earners,​ you​ can get coverage to​ provide a​ percentage of​ the​ higher earnings and bonuses,​ as​ well.
Selecting & Buying Disability Insurance Policies
Purchasing an individual disability insurance policy can be complicated and somewhat expensive,​ similar to​ life insurance. Policy prices are based on​ a​ wide range of​ factors,​ including age,​ gender,​ health status,​ and the​ amount of​ coverage desired. Certain employment raises the​ premiums as​ well.
Buying the​ right type of​ disability insurance is​ important,​ since it’s going to​ cost you​ money and you​ want to​ make sure you​ receive the​ highest level of​ benefits possible if​ you​ ever need to​ make use of​ the​ policy.
The longer the​ waiting period for benefits to​ kick in,​ the​ lower your premium. if​ you​ choose benefits that will be paid within 30 days of​ becoming sick or​ injured,​ you’ll pay higher than policies that have you​ wait 120 days for benefits.
Disability insurance has various riders that you​ must select when buying a​ policy. One that you​ will want to​ be sure to​ include is​ the​ own occupation coverage rider. This rider provides benefits if​ you​ are unable to​ perform your exact job you​ held before you​ became disabled. While including this may cost you​ an additional 40%,​ it’s well worth the​ money if​ you​ should need to​ use your disability insurance.

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