Everyone has a form of disability in their lives. However, various physical disabilities tend to restrict the everyday activities of a person. They result from accidents, illness, and or genetic disorders. They could be visible, hidden, permanent, or temporary, and in the worst-case scenario, they may result in total loss of a person’s bodily or mental functions.
Depending on the nature of the disability, a person is likely to suffer limitations of earning a steady income. It is the more reason why disability insurance is a strong recommendation.
What is Disability Insurance?
It is a type of insurance, which offers a steady income to a person unable to perform their daily income-earning activities. It would be as a result of an injury or a chronic illness while there are both short-term and long-term disability insurances. They both ride on different amounts of premiums even though a majority of employers and organizations tend to offer the former. It tends to cover just 50% of your income and for a period of about three to six months.
Long-term disability insurance takes care of around 60% of your gross salary. But even so, sometimes it comes with a set of exclusions for preexisting health conditions. It could be a past severe illness or ailment, which is currently prohibiting you from going to work.
Who should have Disability Insurance?
Unlike what many tend to believe, disability insurance is not only applicable to on-the-job injuries. A majority of disabilities come in other forms; from anxiety to depression to mental-health issues, while some are pregnancy-related.
It describes the need to have everyone protect their income, including those who are in self – employment. It is worth noting that those in self-employment are likely to higher premiums, which shortens the time they have to wait to access insurance payments. And apart from your occupation and health history, other factors, which determine premium cost include your location and age.
How to get Disability Insurance
Long-term care insurance ensures that your family does not run out of money. It is essential to know that whether you choose long-term or short-term insurance, both have almost the same policies. However, long-term disability policies have bigger and tax-free payouts, perhaps because the benefits last for long periods. Some policies offer the opportunity of being able to pay for specific items such as “own occupation.” It allows you to continue receiving payment benefits even if you can work.
While it is not everyone who can afford disability insurance, it is also not easy to find a provider, who will cover all your needs in the way you envision. Nonetheless, you have the option of choosing independently shop from a private health insurer or to seek help from an insurance agency or agent.
There is a strong recommendation for the latter. Independent insurance is likely to have more products to offer. The good news is that you are right where you should be because CFAInsure has a variety of these products.