You Need Private Disability Insurance!

If you are unemployed or are working for a company that does not offer group disability insurance, it is important to explore your options and invest in coverage to protect your family. Private disability insurance is designed to replace a portion of your income in the event you are temporarily or permanently disabled. The amount of the private disability insurance benefits and your premiums will vary depending on the type of insurance contract you purchase. While individuals can purchase individual coverage, it is important to keep in mind that these insurance plans will be higher in cost than a group plan because your employer is not contributing to the premium payment. Even with the higher cost, carrying private disability insurance gives you the peace of mind you desire and the coverage you need if you are ever unable to work due to a covered disability.

Individuals and families who are completely dependent on one salary should cover the bread winner of the family to ensure they can manage monthly bills even when a paycheck is not being earned. The cost of disability insurance will vary significantly depending on your career, the length of benefits, the amount of your maximum monthly benefit and your waiting period.

Private disability insurance companies have different guidelines on how much insurance an individual can purchase. This limitation will be determined based on the individual’s income. Generally, insurance companies selling disability income insurance will require proof of the individual’s income and will limit disability insurance plans to cover no more than 50 to 60 percent of their average salary. This means that if you are making 100k per year, your benefits will actually total between 50k and 60k.

While the most common type of private disability insurance on the market today is temporary or short term insurance, some companies also offer permanent disability plans. Permanent plans are designed for people who are deemed partially disabled for the remainder of their life. Review the disability programs available in your state to determine whether or not you need this supplemental coverage.

Disability insurance is designed to offer the insured partial wage replacement if they are unable to work because of a disability. Individual policies are very flexible and can be customized based on your budget. If you cannot afford to carry the maximum amount allotted to you, it is best to invest in even a minimal policy for protection during turbulent times.