Disability Insurance, also known as disability income protection or simply Disability insurance, is a type of insurance that covers the potential risk that an injury creates a financial barrier for completion of key function activities. For example, if you are working as a roofer and have a bad back, a long-term medical condition that requires specialized equipment and constant supervision can prevent you from performing the most basic of job duties. If a doctor prescribes physical therapy to help you overcome your back injury, you may need more time than expected to recover from your injury before being able to return to the job that you love. Insurance helps relieve the financial pressures that these scenarios create by covering the cost of missed time from work as well as providing funds to cover lost income while you are recuperating.
The two parts of this equation add up to a huge expense for any individual or family. Long-term disability causes missed time at work and significantly reduces the potential earning potential. This means that disability insurance provides the extra income needed to make ends meet and provide the necessary day-to-day personal care for loved ones. Additionally, long-term disabilities can mean that a person will require special medical care in the years to come. Insurance can cover these costs with a lump sum amount or through monthly payments that supplement your existing income. In order to determine whether or not you are a candidate for disability insurance, it is important to understand its different types and how they protect your income and long-term health.
Old-age insurance provides coverage for your expenses like medical care, home care, assistance for child care, and transportation. As you age, your health declines, making it more difficult to participate in normal activities. Long-term care insurance offers coverage for expenses like nursing home care and the cost of assisted living communities. Another form of long-term insurance is disability insurance. This coverage pays benefits to the insured after the end of the policy. A few different types of disability insurance are available depending on the type of disability you have Doctors disability insurance.
If you are injured at work, you may be eligible for workers’ compensation benefits that will pay a portion of your lost wages and medical expenses. To get this insurance, however, you will likely have to file an injury claim and wait for the company to process your claim. If you have a pre-existing medical condition, disability coverage may be required by your employer; you should discuss this fact with the insurance agent who will be handling your claim. If your employer does not offer this type of coverage, there are other ways to obtain disability coverage without paying the high premiums typically associated with this type of plan.
Long-term disability insurance pays benefits to the insured once the period of coverage has ended, but the premiums paid are generally much higher than the premiums for most individual plans. This is because individuals who become disabled later in life often have longer lasting needs require more coverage and may have other financial needs that must be considered. Insurance companies consider these factors when setting the rates for long-term disability insurance. You should also consider whether you have enough assets and other income sources to provide for your lifetime living expenses without relying on future insurance payments to meet these needs. If you do not have enough money to provide for your lifetime living expenses, you may not be able to afford the high premiums required to purchase long-term disability insurance.
Some employers offer group insurance that will pay a portion of your employee’s income for your disability benefits. If you belong to a small business or corporation, you may be able to get a group insurance quote from the company. However, group insurance coverage will not always cover all of your needs. Before purchasing disability insurance through any group program, you should carefully compare the cost with coverage.