Have 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.
Nobody wants to think about something tragic happening to themselves. 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 insurance protection that 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
A life insurance policy is the best way to ensure that your loved ones have the money that they need, regardless of what happens to you. When you’re looking to get a life insurance plan for your family, there are several different factors that you need to consider.
The first factor to look at is what kind of policy is going to meet your needs the best. There are several types of plans that you can choose from, and each of them has different advantages and disadvantages that you should weigh based on your needs and preferences.
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 life insurance plan.
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 plan. As you can guess from the name, these plans are a permanent form of coverage, which means that they won’t expire. As long as you continue to pay the monthly premiums for the plan, you’ll have life insurance. They are a great option for anyone that doesn’t want to have to reapply for life insurance in the future. If you don’t want to lose life insurance, a whole life insurance is going to be a great option.
The next factor that you need to decide is how much life insurance you need to purchase for your family. Aside from purchasing the right kind of plan, you’ll need to ensure that you buy a large enough plan for your loved ones. There are several factors that go into calculating your life insurance needs.
The first thing that you should do is look at any debts and final expenses that your family would be left with if you passed away. The primary goal of your plan is to give them the money that they need. If you were to pass away, your family will have to pay off your mortgage, student loans, car payments, and anything else. All of those bills can add up to hundreds of thousands of dollars, which can make an already difficult situation a thousand times worse.
The next thing that you should do is look at your annual income. The secondary purpose of your life insurance plan is to give your family the money that they need to replace your stream of income. If you’re one of the main sources of income in your home, your family could struggle to pay for basic expenses if something were to happen to you. Your life insurance policy to help ease the transition of losing that paycheck.
Working With An Independent Insurance Agent
If you’re looking to get the best life insurance policy to meet your needs, the easiest way to do that is by working with an independent life insurance agent. Unlike traditional agents, our independent agents don’t only work with one company. Instead, we represent dozens of highly rated companies across the nation and we can bring all of the best insurance rates directly to you.
There are thousands and thousands of different insurance companies that you can choose from when you’re looking to find the best plan for you. All of them are going to 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 for you.
Insurance policies like disability and life insurance are both excellent ways to give your family protection from whatever life could throw at you. You never know what’s going to happen tomorrow, which means that you shouldn’t wait any longer to give your family the protection that they need.
If you have any questions about life insurance or disability insurance, please contact one of our agents today. We would be happy to answer those questions and help connect you with the best plan to meet your needs. It’s our mission to ensure that you’re getting the best insurance at an affordable rate.