Do You Have Disability Coverage?

In the US, we have a lot of concerns about the number of people who do not have a good major medical insurance plan

. I am sure that even more people lack any sort of disability insurance. Medical policies are meant to pay people who provide medical services. But disability insurance actually provides income for people who cannot work because of a sickness or injury. This is an important topic too.

If you got sick or injured, and could not make it to work, how long would you get paid? You may get some sick time at your job, but it probably does not last forever. If you run your own business, or are self employed, you may not get paid at all if you cannot perform your business duties. If you lost your income, could you still keep paying your bills? Have you thought about the ways that disability insurance could help you.

You should also know that there are different kinds of policies. Spend a little time learning about different policies and options. If you do, you should be able to purchase the right plan for you and your family.

Short term disability insurance (STD) is usually meant to provide income for a few weeks to a few months. These policies will have shorter waiting periods too. In this example, we will declare you have 10 days of sick time. In this case, you might want a policy that starts paying after 14 days. That way, if you are out of work for a few weeks, and you run out of sick leave, you can still collect some income.

Long term disability insurance (LTD) usually has a longer payment term, and it may also have a longer waiting period. Here is an example. Let us say that you have 10 sick days, and then you have an STD that will make payments for an additional 90 days. In this case, you might want to structure your income policy so it pays out after a hundred days. That way you can be sure you have money coming in, even if you are out of work for a long time!

How long will these policies pay you? Normall, an STD will pay out for a few weeks to a few months. LTD policies may make payments for several months to several years. Some even pay out until normal retirement age.You will usually get to choose from a variety of waiting periods and payment terms.

How much will these policies cost you? Your rates will vary depending upon a few things. The place you purchase the policy, your age, current health, and employment situation can all be factors that will affect your final price. You may be able to purchase a policy at your job, and you can also find these policies on the private market. Many life insurance policies also allow owners to add disability coverage!

Should you consider disability insurance? If losing your income would cause big problems, these plans can help provide you with some of the money you will need. You should consider your own budget, needs, and situation in order to make a good decision to protect yourself and your family.

by: Marilyn Katz

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