You insure the most valuable assets you own, and these include your home, car, boat, investment accounts, etc. Your greatest asset though, is yourself, and that needs to be insured as well.
Your body what you use to live, work, and interact with life. Without it, you would have no way to support your family or do any of the things you do on a day-to-day basis.
According to America's Health Insurance Plans, one-third of working adults say their savings would run out in three months or less if their family's primary wage earner lost his or her income due to a disability. Disability insurance can play a crucial role in keeping you financially afloat if a disabling illness or injury strikes.
Though people know how detrimental an injury would be, they may not always take the necessary means to brace themselves for such a blow. Many people do not have long-term disability insurance or believe that their coverage is inadequate.
Even if you do not work in a highly hazardous job like construction, you should still have an insurance policy to protect yourself. Keep in mind that illness actually keeps many more people out of work than accidents causing disability.
I common misconception about injury is that people believe that wince they are in good health, they will not become disabled. This does not account for accidents or unexpected events that could cause you to be unable to do your job.
According to the U.S. Census Bureau, nearly one in five Americans will become disabled for a year or more before the age of 65. An illness or accident that keeps one out of work can be very costly from medical bills, prescriptions, and other unforeseen expenses.
Regardless of your occupation, if you have a job, chances are that you will need disability insurance. Many people assume disabilities are caused by accidents, but the National Institute on Disability and Rehabilitation Research reports that only 13 percent of disabilities are a result of injury.
Instead, the large majority of disabilities are the result of illness. Some people believe that worker's compensation will cover them if they become disabled so they do not need disability insurance.
On the contrary, worker's compensation only covers you if you are disabled as a result of your job. Many worker's compensation programs follow strict guidelines and pay only limited benefits.
Having disability insurance will ensure you are financially stable even if you become disabled outside of work.
Do not count on the benefits you can get through Social Security to eliminate your need for disability insurance. It is very difficult to qualify for Social Security disability benefits.
Even if you do qualify, it takes five months or longer for benefits to kick in, and when they do kick in you will likely only get about $800 a month. Know the specifics of what type of coverage your employer provides.
Talk to your company's benefits or human resources office to find out if the policy covers short or long-term disabilities. You also need to find out the benefit level paid out for claims.
If the benefit coverage offered through your company would not be enough to help you make ends meet in the event of a disability, you may have other options. Many companies offer the opportunity to increase coverage through automatic payroll deductions.
You can also supplement your company coverage with an individual policy. Many people put off getting a policy because they think they are too young.
According to the National Association of Insurance Commissioners, people in their 30's are three times more likely to become disabled than die. You may have enough money saved to pay the bills for a few months, but you need to be able to have some source of income down the road.
When looking over your policy, you need to know a few key things. You need to know if the plan covers accidents and partial disabilities, or only total handicaps.
You need to know what defines a disability, and how long you need to wait until the benefits start kicking in. You also need to know how long the payments will continue.
Also look over the policy pay section and what the monthly maximum will come out to. Finally, discuss options about buying additional coverage at a later time.
Author Resource:-
Jack R. Landry is an expert in the Medical Insurance Industry, helping businesses, families and individuals find affordable health insurance for over 15 years. He recommends http://www.comparemedcosts.com for compare medical insurance quotes.
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