Think for a moment about your life and what it would look like if you could no longer work. If you were injured on the job, or if you became ill and needed long-term treatment, what would happen if you were unable to perform the functions of your job for weeks, months or even years? How would you pay your bills? What would your family do to make ends meet?
The truth is, considering the potential of disability is unpleasant, but from an insurance and security perspective, it's paramount you do so as a precaution. Once injury or sickness occurs, it's too late to consider protection against lost income.
When purchasing disability insurance, you first want to look at your situation. Are you employed? If so, your employer may offer some form of coverage. If you are self-employed, you may need to opt for an individual plan. Are you someone who thinks that worker's compensation or social security will provide enough coverage should disability occurs? If so, think again--if your claim is not rejected (and many are), the amount of compensation you receive will unlikely be enough to meet your most basic financial needs.
If you are employed by a medium or large-sized business, you are likely provided with some type of group plan, but these have their limitations. As with all forms of disability insurance, your entire income will not be compensated for (otherwise, you would have little to no incentive to work toward a return to the workplace), but some may account for up to 60% supplementation while others as little as 20%. Plus, there will be stipulations for how long coverage will be continued while the insured cannot perform the duties of the job. Disability is unpredictable, and in many cases, short-term coverage isn't enough. Be sure to research your policy closely, and have a third party--a financial services group or another insurance provider--scrutinize it, as well. If you find the coverage to be insufficient, you may need to take out a separate, individual policy to augment it.
In some cases, however, if the group plan or employer-provided coverage is particularly unsatisfactory, it may make more sense financially to opt out and pay for a more comprehensive, personal policy. Why spend the extra money for coverage you don't feel confident having?
While many institutions do provide some form of long-term disability coverage, no law requires they do so. Short-term disability coverage is mandated in some states, but most people know this only as sick leave. If you have a child, become temporarily ill or need to miss a few days of work because of an injury, short-term disability will typically cover this. It is the risk of a more extended, more affecting absence from work that needs to be hedged with a long-term disability policy.
Once you have determined what type of disability insurance you need, the process of actually purchasing the plan begins, and this can be complicated. Much like life insurance policies, disability insurance premiums differ based on several factors, such as age, profession, gender, overall health and others. Shop around for rates, and work with different providers until you find a policy that gives you the most coverage for the lowest premiums.
Also, be sure to calculate how long you can feasibly go between the time you can't work until the time you need to receive benefits. If you have a cushion that will last you only 30 or 60 days, you can expect to pay higher premiums. It is recommended you save for a period lasting at least 120 days to get the best rates.
Navigating disability insurance and determining what and how much you need is not a task you should take on alone. After all, it is your future and the future of your family, and you want to guarantee that you are protected should disability occur.
----------------------------------------------------
Wickham Services is an Atlanta insurance agency with years of experience helping people find the disability policies best for them. Consult their agents at http://www.wickhamservices.com/insurance-services/disability/ to learn more about disability insurance and how it can better protect your and your family.
EasyPublish this article: http://submityourarticle.com/articles/easypublish.php?art_id=281563
No comments:
Post a Comment