What is Disability Insurance?
The purpose of disability insurance is to pay out some or all of an employee’s salary in the event that person becomes disabled and is no longer able to continue working at their job.
Who is it for?
Statistically, at least twenty-five percent (one in four) workers are likely to become disabled sometime over the course of their lives. Disability insurance can help to offset and reimburse some of the wages lost in the event of an on the job accident or in the case of a long-term disease that would prevent you from working.
How does it work?
Your coverage would kick anytime a disability arises over the course of your working life, and could cover roughly seventy percent of your salary, depending on your individual policy.
Different types of coverage.
Depending on the severity of your disability, you may qualify for either short-term or long-term coverage. Short-term will usually cover a percentage of your lost wages for up to six months, while long-term can cover you for up to the remainder of your lifetime, depending on factors such as the nature of your disability and the type of coverage you or your employer carries. Individuals who are not covered by their employers are able to choose from several private options.
There are several main benefits to this type of coverage. The main concern is that in the event of a workplace injury or debilitating illness, you and your family won’t have to worry about replacing your lost income right away. Another benefit is that, unlike Social Security, there are no age restrictions on who can receive payouts. If you’re working, you’re eligible for coverage. Many people find that the peace of mind they receive by carrying this kind of coverage, either through their employer or privately, far outweighs the monthly premiums.
Exploring the Benefits of Disability Insurance
Good disability insurance is available to provide compensation for all or a part of an employee’s salary should he or she become disabled and no longer be able to work.
Most studies conclude that about twenty-five percent or more of workers will become disabled at some point over the course of their working life. Disability insurance is what can ameliorate the often-disastrous effects of the lost wages with which one will be faced in the event of accident on the job or in the example of a long-term disease that inhibits one from working.
How the Coverage Works
Coverage normally is activated should some kind of a disability happen during the time of your working life and can cover up to around ¾ of one’s salary, depending on the policy agreement.
Kinds of Coverage.
Depending on how severe your disability may be, you will likely qualify for either short or long-term coverage. Short-term usually works for up to six months, while long-term can provide a good portion of what be lost income for the remainder of your life. Coverage will vary depending on such factor as the kind of disability suffered and the kind of coverage that you carry. Those who not protected by employer provided coverage can opt for several private policies available in the marketplace.
There are some main benefits enjoyed in being covered by good disability insurance. There is the priceless peace of mind in knowing, should one be stricken with a workplace injury or some kind of devastating illness, that the policyholder and his or her family won’t need to stress about replacing lost income in the near future. Another plus is that, unlike Social Security for instance, there is no age requirement as to who can enjoy a payout. Simply put, if you’re employed and working, you’re good-to-go for coverage benefits in time of need. Often, any monthly premium costs are far outweighed by the wonderful benefits inherent in this coverage.