Disability Insurance

Disability insurance is protection for you if you ever develop a condition that causes you to lose your ability to work. Because work is how most people generate income, a disabling condition can quickly deplete your savings and cause financial hardships.

You can protect your finances using disability insurance. Learn more about it and how to get it.

Types of Disability Insurance

You may be familiar with Social Security Disability Insurance, paid to those that need it from the Social Security Administration. However, there are two other types of disability insurance you can purchase on your own.

Short-Term Disability Insurance

Short-term disability insurance, as the name implies, is coverage for a condition that prevents you from working for a short time. Short-term disability insurance can provide coverage for up to two years, but most policies cover one year.

Short-term disability policies have initial waiting periods of zero to 14 days, depending on the policy you choose, and pay a percentage of your income for the benefit period. For instance, if you became ill and could not work for three months, the insurance would pay you a percentage of your salary or average wages for three months.

Long-Term Disability Insurance

Long-term disability insurance takes over after the short-term disability insurance period ends and can last until you retire and/or start receiving disability payments from Social Security. Like short-term disability insurance, long-term will pay you a percentage of your salary or an average of your wages.

The key difference between short and long-term disability insurance is that long-term has an elimination period. The elimination period is generally set and agreed on by you and the company issuing the policy. This period states how long you must be injured or disabled to begin receiving your monthly benefit.

The shorter the elimination period, the more you will pay in monthly premiums. This means if you have long-term disability insurance and an elimination period of 90 to 180 days, you will need to have enough funds to cover your expenses until your policy starts paying out money to you.

Most insurers will not cover preexisting conditions, so if you already have a condition keeping you from work, you may be unable to find an insurance company that will sell you a disability policy.

How to Get Disability Insurance

Disability Insurance Costs

Why Do I Need Disability Insurance?

Many people may believe they do not need disability insurance or do not consider it. The Social Security Administration says that one in four 20-year-olds will become disabled before reaching retirement age. This means that one-quarter of the population at some point in their lives are likely to need help generating enough income to live on. Consider also that the cost of living continues to rise, and inflation is higher than it has been in decades.

With all this in mind, it is essential to ensure you have a way to continue providing for yourself and your family. Disability insurance is designed to help when you need it but waiting until you are disabled to purchase coverage is too late. To ensure your financial future is protected, you should look into disability insurance while you are working and able.

Get In Touch to Learn More About Your Insurance Options

If you have any questions about whether or not you need disability insurance, I can help. As a disability insurance agent, I can help you understand your options and find the right coverage for your needs.  Contact me today to discuss your insurance options.