Disability Insurance

Disability InsuranceDisability insurance is one of those insurance categories that can seem unnecessary – until the day when something unexpected happens and you actually need it. In this article, we’ll explain some basic facts about disability insurance, so that you know what to look for in a disability insurance policy.

What Disability Insurance Does

The purpose of disability insurance is to protect your future earnings. Imagine you get into a car accident or are diagnosed with a serious illness that forces you to stop working. How will you support yourself and your family if this happens? You may believe that you will be able to look to the government for disability payments. However, receiving disability payments from the government requires a long application process – it might take you several years to have your application approved. Even when your application is approved, the money may not be as much as you are used to.

Although no one likes to think that a scenario such as this may happen to them, it does happen to thousands of Americans every year. The US Census Bureau says that almost 50 million Americans of all ages have a disability, and two-thirds of these have a severe disability (Source: Office of Disability Employment Policy http://www.dol.gov/odep/faqs/people.htm).

Understanding these facts, you definitely owe it to yourself and your family members to keep a current disability insurance policy. Disability insurance coverage will help you keep your normal, or close to normal, income during the period that you are unable to work.

Types of Disability Insurance

There are two primary types of disability insurance – short-term and long-term. Short-term disability insurance will replace a portion of your lost salary if you miss six months or less of work. Coverage usually begins after you exhaust your sick leave, and most policies will replace 100% of your lost wages during the initial period of your inability to work. However, these payments usually begin to drop off if you remain out of work, sometimes dropping all the way to 60% of your normal salary.

Long-term disability is exactly what it sounds like – it is designed to protect you in the event that you are incapacitated for a long period of time. These policies usually replace 50 – 70% of your normal salary; occasionally, you can find a policy that will cover as much as 80% of your normal salary.

Disability Insurance Rates

Disability Insurance RatesCheck our website to find great disability insurance policies at competitive insurance rates. We feature a variety of different disability insurance policies to meet the needs of different individuals. Take a look at these disability insurance policies to find a rate and a policy that works for you.