The Facts And Details On Disability Insurance
If you’re in good health and of a young age, you might not think you need disability insurance. Who knows, you could be right. But when you think into the future, ask yourself how long you could survive without a paycheck. That scenario could come to fruition because you just never know when you might have a serious illness or injury that could take you out of commission. Before you wave disability insurance away completely, understand how it works to protect you in case something unforeseen occurs.
The Importance Of Disability Insurance
Becoming disabled can happen to anyone at any time. It could be an accident at work, in the car, or even at home. But disabilities don’t occur just from accidents. They can also come from ailments like cancer or other diseases that also prevent you from working. The end result is the same—you no longer have an income to rely on. If you have a family to support, it’s even more important to be covered.
Short- Or Long-Term Disability
You can have two different types of insurance based on time frame. Short-term disability insurance has a benefit period of two years or less. Long-term disability covers you from one year up to the age of 67. Keep in mind that many employers offer disability insurance, but you need to know the specifics of what they offer. It can benefit you, but most of them have only short-term plans. If you are disabled and unable to work for a long period of time, you might want more coverage than your employer can provide.
Disability Insurance Costs
As you price different policies, keep in mind that age plays a role in the cost. The younger you are, the less it will cost because you have lower chances of becoming disabled any time soon. You will also want to consider the elimination period, which is the waiting time between the disability’s appearance and when you can start getting benefits. The longer your waiting period, the cheaper the policy will be. The typical waiting period is 90 days and often, an employer’s short-term policies will cover you until then. It’s also beneficial to have a policy with non-cancellable contracts. That means the policy can’t be cancelled by the insurer, unless you don’t pay your premiums. That way, you can renew the policy without increasing the prices or reducing the benefits, even as you age. And you may also want a future purchase option with gives you the ability to increase the amount of coverage you have over the years if your income increases and you want more backup.
More Disability Insurance Questions
This gives you a good start, but as you look into disability and how much you might need in the event of incapacitation, it is always a good idea to talk to a trusted insurance representative. Contact Nickerson Insurance Services, Inc to get honest, straightforward information so you can make the best decisions for the future of your family.