As people live longer today than ever before the likelihood that someone may suffer serious illness or disability has increased. Disability insurance helps replace the income lost by those who are unable to perform their work duties due to unforeseen injury or illness. As many may not have a savings account set aside to cover the expense of lost income, and due to the fact that disability may be long term, many choose to purchase disability insurance. Like any type of insurance, disability insurance rates vary from one insurer to the next, making it imperative to perform your research and get various quotes in order to find the best and most affordable deal.
Though there is great benefit to living a healthy lifestyle, there are no safeguards that even by giving up bad habits; exercising daily and eating a healthy diet will keep you safe from serious illness or accidents that can prevent you from working. It doesn’t take long to realize how hindered your lifestyle and family’s well being could be if you were to lose the ability to work and provide an income. Many recognize the importance of maintaining health, life, auto and home insurance yet don’t realize the importance of having disability insurance. As life insurance provides protection for your family should a breadwinner pass away and home insurance protects your home, disability insurance protects your paycheck.
It’s important to realize that not all injuries are work related therefore worker’s compensation doesn’t cover for all disabilities. Additionally, Social Security isn’t guaranteed to anyone and the majority of claims are initially denied indicating that those who become disabled that have no insurance are at an extreme risk of facing financial ruin. Social Security benefits aren’t very extensive and chances are that those who are approved for SS after becoming disabled wouldn’t receive enough in a payment to maintain their standard of living or even pay their monthly bills. Also, those who are approved for Social Security may find they wait a year or more before their application is approved and they receive their first check. Those depending on Social Security paychecks as a quick solution to long term disability are often greatly disappointed. As worker’s compensation and Social Security aren’t guaranteed, it is imperative that employees seek coverage to ensure their livelihoods and paychecks are protected.
Some employers do provide disability insurance; however, they may not provide long term coverage. Those who are out of work for six months or longer will find they can quickly empty a savings account and may discover that their employ doesn’t offer long term disability insurance but rather short term insurance. It is imperative that all employees speak to their human resource department to determine what type, if any, disability insurance is offered. Those who receive short term disability insurance form their employer but not long term insurance may wish to compare different quotes and find an affordable policy that will provide the protection needed.
As many people live paycheck to paycheck it isn’t hard to see how the loss of that check poses significant financial threat to a family. Disability insurance exists to help you maintain your current standard of living during times of trouble or distress due to the inability to work. Many financial experts agree that disability insurance is just as important as a life insurance plan. It’s important to recognize that history shows us that disability can cause extreme financial hardship and there are many cases of home foreclosures and bankruptcies due to a sudden disability. By ensuring that you have enough disability insurance to cover your needs, expenses and maintain your standard of living you can prevent financial ruin. When choosing disability insurance, keep in mind that short term policies will have lower deductibles compared to long term insurance; most short term policies cover up to six months. Keep in mind that most disability insurance policies will reimburse you up to 60% of your weekly paycheck.