Determining if Disability Insurance Is Necessary
Disability insurance is one of the most ignored types of insurance that people do not buy. You might think that you are in great health and do not need disability insurance. However, disaster can strike without warning. Accidents do happen that could prevent you from working. In addition, the body is unpredictable, and disease or illness could suddenly attack.
What is Disability Insurance?
Disability insurance is an insurance policy that will cover much of your salary if you are unable to work. Money is necessary to live, so this type of insurance will give you some income. It basically protects you financially if you become disabled.
Why do you Need Disability Insurance?
You do not want to think about becoming disabled, but there are a large number of people in this country who cannot work because of a disability. Having disability insurance can keep you from having severe financial hardships in the future. If you do not have disability insurance, there are many reasons as to why it could really cost you:
1. Loss of Income: Paid sick leave only goes so far. The cost of the diagnosis, treatment and recovery can be significant. You also need to make sure that you have the money to pay monthly expenses. You might have the necessary medical insurance to cover your medical bills, but the other expenses can leave you in a financial bind. When you cannot work, you will not receive any income, but your bills continue. If you have disability insurance, you will be receiving some money to help offset your loss of income.
2. Medical Expenses: Even though you might have medical insurance, the cost of heath care is increasing. Even with medical insurance, there could still be a significant cost for your treatment and recovery. You might need specialists or even physical therapy to aide in your recovery. The gas money also adds up. You will need to travel to the hospital or doctor's office while you are recovering.
3. Miscellaneous Expenses: If you are not receiving income, you cannot do the things that you enjoy. In other words, your quality of life would decrease. You cannot go out to dinner or rent a movie. You could not spend money on your family at Christmas time or for their birthday. It would be a very boring and stressful way to live.
Types of Coverage
There are basically two types of disability insurance coverage:
•Short Term Disability: This type of disability is coverage that does not last long, usually for about a year. If you are not able to work because of a disability, you need to return to work within that year. This is usually less expensive.
•Long Term Disability: Long term disability is insurance that will take longer than a year. You have a serious problem in which you cannot recover from within 52 weeks. Long term disability insurance usually begins after your short term insurance has expired. Some employers provide short or long term disability benefits. Other employers offer it as a payment option. It is a needed benefit if you do not want to go without income because of a disability.
Advantages of Disability Insurance:
Since you will not receive a paycheck from your employer, you will receive income through your disability insurance provider. You will need money to pay your monthly expenses, such as utilities, mortgage, groceries, etc. Having a paycheck could even prevent you from facing foreclosure. Normally, disability insurance is a percentage of your salary. The amount that you will receive depends on your type of insurance plan. It might be half of your income, or it could be up to 3/4 of your salary. Although it will not be all of the income that you are accustomed to receiving, it could keep your head above water during this difficult time.
What is Disability Insurance?
Disability insurance is an insurance policy that will cover much of your salary if you are unable to work. Money is necessary to live, so this type of insurance will give you some income. It basically protects you financially if you become disabled.
Why do you Need Disability Insurance?
You do not want to think about becoming disabled, but there are a large number of people in this country who cannot work because of a disability. Having disability insurance can keep you from having severe financial hardships in the future. If you do not have disability insurance, there are many reasons as to why it could really cost you:
1. Loss of Income: Paid sick leave only goes so far. The cost of the diagnosis, treatment and recovery can be significant. You also need to make sure that you have the money to pay monthly expenses. You might have the necessary medical insurance to cover your medical bills, but the other expenses can leave you in a financial bind. When you cannot work, you will not receive any income, but your bills continue. If you have disability insurance, you will be receiving some money to help offset your loss of income.
2. Medical Expenses: Even though you might have medical insurance, the cost of heath care is increasing. Even with medical insurance, there could still be a significant cost for your treatment and recovery. You might need specialists or even physical therapy to aide in your recovery. The gas money also adds up. You will need to travel to the hospital or doctor's office while you are recovering.
3. Miscellaneous Expenses: If you are not receiving income, you cannot do the things that you enjoy. In other words, your quality of life would decrease. You cannot go out to dinner or rent a movie. You could not spend money on your family at Christmas time or for their birthday. It would be a very boring and stressful way to live.
Types of Coverage
There are basically two types of disability insurance coverage:
•Short Term Disability: This type of disability is coverage that does not last long, usually for about a year. If you are not able to work because of a disability, you need to return to work within that year. This is usually less expensive.
•Long Term Disability: Long term disability is insurance that will take longer than a year. You have a serious problem in which you cannot recover from within 52 weeks. Long term disability insurance usually begins after your short term insurance has expired. Some employers provide short or long term disability benefits. Other employers offer it as a payment option. It is a needed benefit if you do not want to go without income because of a disability.
Advantages of Disability Insurance:
Since you will not receive a paycheck from your employer, you will receive income through your disability insurance provider. You will need money to pay your monthly expenses, such as utilities, mortgage, groceries, etc. Having a paycheck could even prevent you from facing foreclosure. Normally, disability insurance is a percentage of your salary. The amount that you will receive depends on your type of insurance plan. It might be half of your income, or it could be up to 3/4 of your salary. Although it will not be all of the income that you are accustomed to receiving, it could keep your head above water during this difficult time.
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