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Coverage Characteristics of Disability InsuranceHave you ever wondered about the coverage characteristics of disability insurance?

Well this type of insurance provides financial compensation when you are disabled or injured to the point that you are unable to work.

Now, the compensation is not always to equal the amount of income that you would generate were you still able to have that job.

Disability insurance can generally cover any amount from 70% up to 100% of what you used to make while employed.  Your payout amount as well as how long the insurance payout lasts depends upon the state of the disability and what type of disability insurance has been purchased.

Factors Of Disability Insurance

Since disability insurance is underwritten medically, your health is fully considered.  This also means that any preexisting conditions that you may have are also taken into consideration.  There is short-term and long-term disability insurance.  When you are initially injured or fall ill, or if the disability is not deemed one that comes under the long-term category, you may only qualify for short-term disability insurance.  Your payout period from short-term insurance can last anywhere from 6 weeks to 2 years.  There may be a waiting period of about 2 weeks before you begin receiving your disability benefits.  With short-term disability, the amount of your benefits is likely to be 80-100% of what you were paid while you were employed.

If your injury or disability qualifies you for long-term disability insurance, you may experience a waiting period of about 90 days before your benefits begin.  Your insurance payout is likely to top off at an amount that is 70% of what you made while you were employed.  Your long-term insurance can last for a period of 5 years up until you reach the age of retirement.

Common Types Of Disability Insurance

When employers buy disability insurance they often go with group plans instead of individual.  You as an employee may have to purchase your own disability insurance, and going with a group plan will generally cost you significantly less than an individual disability insurance plan.  The premiums that you or your employer will pay for coverage vary depending on the dangers that are present in your place of employment.  If you work in an office setting, your premiums are going to be less than if you worked around dangerous chemicals or operated heavy machinery.  The benefits that you receive from a disability insurance payout are not able to be taxed if you paid the premium.  If your employer paid the premium, then your payout is taxable.

You may find, like most people, that individual disability insurance plans, while more flexible than group plans, cost much more than can reasonably be afforded.  An individual plan could allow you to receive a payout for a disability that was incurred during the course of one job and continue even if you are earning income through another job.  There is often a waiting period with individual disability insurance plans that can delay your receipt of coverage.  Hopefully, even though you have an idea of coverage characteristics of disability insurance, you will not have to use it in your lifetime.  While it is good to have this type of insurance, it is doubtful that you would enjoy the effects of suffering a disability or illness that can keep you from being employed.

You never know what’s going to happen tomorrow, which means that you should always plan for the worst. Disability insurance policies are a great way to give your family the protection they need. Aside from a quality disability insurance plan, you should also ensure that you get the perfect life insurance plan to meet your family’s needs.

If you were in an accident, and either have a disability or you pass away, it could put a lot of stress on your family. Both emotional struggles and financial ones. A disability insurance plan your family will have the resources that they need in case you are unable to work, but if something happens to you, and you were to pass away, they are going to need a large life insurance plan to get them through the tragic ordeal.

Getting A Quality Life Insurance Policy

We are going to give you some tips and tricks for finding the best insurance policy. It doesn’t have to be as painful as it sounds.

The first factor to look at is what kind of plan you’re going to buy. The two main kinds of life insurance are a term life plan and a whole life insurance policy. These are the two most common types of life insurance. If you’re looking to get the most affordable kind of life insurance is a term.

Term life insurance plans are sold with pre-determined expiration dates attached to them. After that date has passed, the plan is no longer active, and you’ll have to reapply for life insurance coverage. Because these plans are going to expire in the future, they are going to be much more affordable than other kinds of plans.

Another option for coverage is to purchase a whole life insurance. Whole life insurance is permanent. You don’t need to worry about losing life insurance until you reach the company’s max age limit. Whole life insurance is more expensive.

The next factor that you need to decide is how large of you plan you need to buy. Aside from purchasing the right kind of plan, you’ll need to ensure that you buy a large enough plan for your loved ones. Let’s figure out your life insurance needs.

To start, gather all of your debts and add them together. Your plan must be bigger than your major debts. Combine your mortgage, student loans, and every other debt your family would be responsible for paying.

After that, take the debt number and add in your annual income. Not only will they have to pay your debts, but they will have to pay them without your salary. Give them the money to replace your paycheck.

Working With An Independent Insurance Agent

There are 6,000 companies out there you can choose from when you’re looking to find the best plan for you. Each offer different rates for your coverage, which means that it’s vital that you receive as many quotes as possible before you choose the one that’s going to work best.

Insurance policies like disability and life insurance are both excellent ways to give your family protection from whatever life could throw your way.

Hopefully, you have all of the information you need about disability insurance and life insurance. If you’re still left with some questions about either kinds of protection, let us know. You can use our contact page or give us a call.

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