You Need Long Term Disability Insurance!

Living from one paycheck to another often does not leave much room for ‘extras’ but when it comes to insurance and protecting your finances, long term disability insurance should not be considered an ‘extra’.

What Is It For?

Long term disability insurance is established for those who get injured or ill, leading to a loss of income during the time period you are unable to work. Disability insurance is typically paid out on a biweekly or monthly basis. These payments can be used to keep up with bills and daily living expenses while you recover. Since you can not work, it may be your sole source of income, which makes long term disability insurance coverage indispensable.

Where Do You Get It?

Often, people secure disability insurance from their work place. Employers usually offer insurance under a group policy;  however, most of the time your employer only offers short term disability, leaving you to fend for yourself after the policy lapses (usually within one year). Insurance checks will normally begin paying out once the employee has used up all of the earned sick time. Many employees will sign up for disability insurance through their employer and will also opt to get additional coverage so in the event of injury or illness, there will be enough income to sustain their family.  Google “long term disability insurance” for a list of potential insurers.

What Kind of Coverage is Offered?

Disability insurance policies can be written for either short term or long term coverage. Short term provides coverage for less of a time period, say during recovery time from surgery. Long-term disability coverage will last for longer stretches of time, for example becoming disabled and unable to work for years up to the age of 65.

How Much Do I Need?

If you are unable to work, you will need a source of income to keep up with the bills. Disability benefits are limited to upwards of 75% of your income. You may opt to get additional coverage to ensure you are fully protected in the event something should happen. You will pay a premium that is based on your age, your occupation, your health status, and other factors deemed appropriate by the insurance company. For instance, some carriers will require a complete physical exam before agreeing to write a policy.

How Soon Should I Get Coverage?

Realistically something can happen to you at any time. Accidents and illnesses are not selective. They can take anyone down at any time, especially when you least expect it. If you are not currently covered with disability insurance, make an appointment to speak to your human resource department to discuss signing up for insurance on the group’s plan. If your employer does not offer insurance of this type, or if you are self-employed, do an Internet search for disability insurance. The insurance industry is very competitive and with a bit of legwork, you are sure to find an affordable policy that fits your needs, budget, and lifestyle.