Discussing disability insurance can be confusing. The problem is most people assume the state covers payments, especially if you are hurt on the job. And while, you may be entitled to government disability benefits, in this article, we will discuss your options and requirements through an insurer that you choose not an employer participated program nor workers compensation.
Basically, in its shortest form, disability insurance protection gives you peace of mind by replacing your income, thus, allowing you to keep up your monthly payments on rent or a house mortgage. You are not limited, though, to making housing payments. As the monies paid to you is your monthly salary while you are injured or too ill to work, obviously, the benefit will also go towards groceries, utilities, car payments and other daily necessities.
Generally speaking, the insurance comes in three forms:
short term disability usually covers periods away from work that range from sixty to ninety days
long term disability kicks in after ninety days and can last six months, a year, ten years or even a lifetime
Indeed, for most couples, the choice would be between short term and long term. If, however, a family business is involved, then the couple should be discussing what happens to the business in time of injury or sickness.
Additionally, the business coverage may allow you to employ someone to complete your duties at the company while you are infirm.
If your budget is very limited and you still want coverage, which really is an excellent idea, then you could purchase a policy for accident short term. You would not be covered in the case of illness, but should you have some kind of accident, the benefits would kick in. While everyone says that nothing is going to happen, the truth is accidents do happen regularly to all ages and all income brackets.
Several factors are important when choosing coverage:
You need to completely and honestly list all your monthly expenses. Remember to include items that are paid quarterly and yearly like your home and auto insurance. Divide them by twelve (if yearly) to calculate the monthly amount.
The insurer may offer riders for critical illness or hospital confinement. Be sure to check all your insurance policies to ensure there is no gap in coverage. Dont assume your employers plan is enough.
Ask each other for how long you will need coverage? You dont want to cash in pensions or use up savings.
Be sure to inquire about a survivor benefit in case your condition causes your death. You will want to leave your dependents protected and financially secure with a roof over their heads.
When choosing your plan, take the necessary time to obtain quotes. Also, find out whether you qualify for any discounts. If you are a new couple starting out, this is the best time to discuss disability insurance and take action while you are younger and in excellent health.
Heres a quick and easy to understand explanation of disability insurance