Why You Need Disability Insurance

Why you​ Need Disability Insurance
Most people take it​ for granted that they are able to​ awake each day and earn an​ income to​ support themselves and their family .​
the​ ability to​ be independent in​ this regard is​ one of​ your most valuable assets .​
Additionally,​ most people do not understand that the​ chances of​ becoming disabled at​ some time during their working career are higher than they would imagine .​
Hence,​ disability insurance is​ available to​ protect your assets.
Disability insurance is​ insurance that is​ intended to​ replace your income if​ you​ should become sick,​ disabled,​ or​ hurt,​ and the​ illness or​ accident prevents you​ from earning an​ income in​ your occupation .​
Disability insurance will pay anywhere from 45% to​ 60% of​ your gross income during your absence from work.
It is​ important to​ note however,​ that not every policy is​ the​ same .​
Carefully scrutinizing the​ details and comparison-shopping is​ necessary when shopping for disability insurance .​
the​ least expensive policy is​ not necessarily a​ good choice .​
the​ odds of​ being paid a​ monthly benefit that will cover your cost of​ living while you​ are disabled are not improbable if​ you​ have purchased a​ low-cost insurance policy .​
The purpose of​ this article is​ to​ provide useful information about the​ features of​ disability insurance,​ so that you​ can make an​ informed decision when purchasing your insurance policy.
Types of​ disability insurance
Short-term disability is​ as​ it​ name implies .​
This policy may pay benefits for two weeks up to​ two years .​
Usually,​ your employer provides short-term disability policies.
Long-term disability as​ it​ name implies,​ will provide benefits for an​ extended period .​
Long-term disability insurance usually lasts about 5 years .​
This type of​ insurance will also expire when the​ person turns 65 .​
Some employers will offer this type of​ insurance as​ part of​ employee benefit package or​ will make it​ available at​ a​ specific cost.
The two main types of​ long-term disability insurance policies are non-cancelable and guaranteed renewable .​
a​ non-cancelable and guaranteed renewable policy means that the​ insurer cannot cancel or​ refuse to​ renew your policy as​ long as​ the​ required premiums are paid on​ time .​
However,​ the​ significant differences between the​ two policies are that with a​ guaranteed renewable policy the​ premiums can be raised,​ but only if​ it​ affects the​ entire class of​ policyholders .​
Under a​ non-cancelable contract,​ the​ premium payment remains in​ effect as​ stated on​ the​ policy .​
Consequently,​ initial premiums for guaranteed renewable policies can be less expensive than non-cancelable policies

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