Personal Disability Insurance
Most people insure their material possessions, such as their homes and cars. However, many of these same people don’t insure what is actually their most valuable asset – their ability to work and earn income.
If you become sick or are injured and cannot work, will you be able to pay your bills and maintain your standard of living?
If you depend on your income to finance bills, you should consider the benefits of enrolling in a personal disability insurance program. Whether you choose a short term disability benefits package or a larger-scale disability income insurance policy, the coverage you will receive can help you pay your bills by replacing a portion of your income. Furthermore, safeguarding your income with a disability policy can help you maintain your current lifestyle and help protect you and your family from falling into serious debt.
Your chances of being disabled at some point during your working career are probably higher than you think. According to the Social Security Administration, studies show that a 20-year-old worker has a 3 in 10 chance of becoming disabled before reaching retirement age. Of course, the chances that any one individual will be disabled before retirement depends on many factors, including age, general health, and occupation.
After what is known as the elimination or waiting period – a set amount of time after the disability occurs – your individual disability insurance policy will begin paying a percentage of your income. This percentage is usually no more than 70% of your normal income. These payments will continue for the duration of your disability or until the time limit stated in the policy has been reached.
In comparison, a short term disability benefits package will pay benefits anywhere between 13 weeks to two years after the disability occurs. Short term disability is also commonly known as sick leave. People use this when they are injured, or when they have a child – on average, claims because of pregnancy make up as much as 30% of the total short term disability claims – however there usually are many specific limitation associated with pregnancy benefits. A short term disability benefits package typically pays between 50 % and 60% of your salary, if you get disability through your employer. However, supplemental and individual disability insurance policies will oftentimes offer higher benefits, as much as 80% of your income.
The cost of a personal disability insurance policy depends on your age, occupation, and various other health factors. Call us today and fill out our free quote form to see how we can help find the right disability policy for you!