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Disability Insurance |
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If you have lost income due to an accident or illness, you
can recover it buy taking out a disability insurance
beforehand.
The basic things that you need to take care of before buying
a disability insurance are listed below.
1) The insurance company's definition of disability. This is
the fine print that needs to be read and thought about. Some
companies define disability as the inability to do daily
duties. Others define it as inability to continue working in
your job. Some policies define disability in terms of your
own occupation for an initial period of two or three years
and then continue to pay benefits only if you are unable to
perform any occupation.
2) Another important detail is the benefit period. Choose
insurance's which provide monthly benefits. Also choose
insurance's which provide these benefits until you are 65
years old. From here on the Social Security disability
benefits will take over. Lifetime benefits are usually
inexpensive.
There are many ways that income can be replaced, the methods
are as follows,
1. Employer-paid disability insurance Most employers provide
some short-term sick leave. Many larger employers provide
long-term disability coverage as well, typically with
benefits of up to 60 percent of salary lasting from five
years to age 65, and in some cases extended for life.
2. Social Security disability benefits This can be paid to
workers whose disability is expected to last at least 12
months and is so severe that no gainful employment can be
performed.
3. Individual disability income insurance policies These are
the insurance policies that you take out to protect
yourself. Other limited replacement income is available for
workers under some circumstances from workers compensation
(if the injury or illness is job-related), auto insurance
(if disability results from an auto accident). |
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