While no one plans on becoming disabled and being unable to work; unfortunately for many individuals, this does become a reality at some point in their lives. For some, it isn’t until they become disabled that they begin to look into disability insurance options. However, disability insurance is designed to help you prepare for the unforeseeable, so that you never find yourself in a situation where illness or injury prevents you from being able to support yourself or your family.
In today’s blog post from Medi-Solutions Insurance Agency, LLC, we are going to discuss disability insurance and why you should consider investing in an individual policy before an injury or illness occurs. Read on to learn more, and when you are ready to speak to a helpful and knowledgeable independent agent, reach out to the team at Medi-Solutions Insurance Agency, LLC.
Disability insurance is designed to provide you with a source of income while you are disabled and cannot work. It typically covers a portion of your normal income, up to 70%. In the event that you become injured or sick and you are unable to perform your job, disability benefits are paid directly to you so that you can use the money as you see fit for any expenses necessary. Disability insurance is available in both short-term and long-term policies.
Short-term disability typically covers a period of three to six months. As the name implies, short-term disability insurance can help cover your living expenses while you are injured or sick for a short period of time. It pays out immediately when the injury or illness occurs.
Long-term disability insurance is designed to help to cover your expenses while you are disabled in the long run until retirement. Long-term disability policies are typically expressed in years rather than months.
Long-term disability policies do not pay out immediately. Instead, they require an elimination period. This is a period of time that you must wait until you begin to receive disability insurance benefits. Elimination periods range from 30–360 days, depending on the terms of the policy.
If you have both short-term disability and long-term disability, you may be able to receive benefits from your short-term disability policy while you are in the elimination period of the long-term policy, decreasing, or possibly even eliminating, the amount of time you will have to go without receiving benefits.
There are several types of disability insurance. If you have paid enough into Social Security through your paychecks, you may be eligible for Social Security Disability Insurance (SSDI).
The Social Security office also handles Supplemental Security Income (SSI), although this program is funded by general federal taxes rather than Social Security taxes. This program is available to those who have little to no income whether or not they have paid into Social Security.
If you have been injured on the job, you may be able to receive disability benefits through workers’ compensation insurance. You may also receive short-term and long-term disability benefits through your employer.
Additionally, you may also purchase your own disability policy to protect yourself in the event that you become sick or injured and cannot perform your work duties any longer.
There are many types of disabilities that could prevent an individual from working. These disabilities include injuries, mental health disorders, illnesses, and more. Below we’ve included a list of some of the most common types of disabilities that hinder an individual’s ability to work, although this list is in no way comprehensive.
When deciding on which type of disability insurance you need, there are few factors that you should consider. First, understand that many of the conditions that can cause an individual to be unable to work are unforeseen, and that this insurance is a way to help you pay for expenses such as your mortgage or rent, groceries, transportation, utility bills, and anything else that you need in the event that you become sick or injured and can no longer bring in income on your own.
When deciding on whether you need short-term disability, you should consider whether or not you have enough in emergency savings to pay for about three to six months of expenses. Short-term disability will help with those expenses, so whether you don’t have that much in savings, or you would rather not spend it, short-term disability may be a good choice. Also, remember that if you ever become permanently disabled, you will have to wait through the elimination period to receive long-term disability. Short-term disability can help cover expenses during that time since it pays out immediately.
No one wants to consider the fact that they could become permanently disabled and unable to perform their job. However, these situations do happen due to serious illnesses, unexpected injuries, and other unforeseen circumstances. If you want to protect yourself and your family in the event of a permanent disability, long-term disability is a viable choice.
If you are considering purchasing a short-term or long-term disability plan, or you would just like more information, we can help. The independent agents we work with are dedicated to providing you with the information and options for you to choose a disability plan that fits your needs. Reach out to our team today to learn more.
Information is for educational purposes only and should not be construed as an offer of insurance, advice, or recommendation. The information provided is not intended as tax, financial, investment or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation.
Not connected or endorsed by the US Govt or the Federal Medicare Program. Medi-Solutions Insurance Agency, LLC is an independent Life, Accident and Health Insurance Agency, NJ Ref#1642311. Some plans and features may not be available in all states.
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