Disability Insurance Policies
Being out of work can be a financially devastating thing, particularly if there are hospital bills on top of it. Nobody wants to think that they'll be the victim of an accident, but it can happen to anybody. When it comes to preparing against a disability, whether it be long term or short term, it's important to have disability insurance. You may not be familiar with disability coverage, so let's take a look and see just what it is you need to know about it.
What it is and how it relates to Workplace Benefits (offered by employers)
Simply put, disability insurance is a type of insurance that will pay you some or even all of your normal salary if you become disabled and unable to do your job. Becoming "disabled" can mean a few different things in this context. The insurance covers everything from basic accidents and injuries to things such as heart attacks. It helps workers recuperate some of the costs associated with being out of work. Employers will often offer workplace benefits that will cover injuries such as this, but it's possible to get more insurance privately.
Who it is for
It's is absolutely great for older workers or anyone with chronic illnesses, but the truth is, it's possible for anyone to come down with a major injury that would cause them to need insurance. It's an ideal investment for anyone, even if they're working a relatively sedimentary job that they might not think is too much of a risk. While you may think an injury like that could never happen to you, it's possible for it to happen to anyone. This type of insurance is a great investment for everyone.
How it works
It can either be obtained through your place of employment or privately. You sign up for the service and if you become disabled, you will be given a portion of your salary while you are out of work.
Different types of coverage in existence
Disability coverage is usually broken up into two different types: short term and long term. Short term insurance is generally designed to cover a duration of 2 to 5 months and will generally give the out of work employee upwards to 80% of their income. Long term insurance will last longer and will usually pay out less than what short term insurance will.
The best benefits of having insurance is that you're able to maintain paying your bills and living a relatively financially stable life where you'd otherwise not have enough to cover expenses.
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