Protect You Income with Disability Insurance

Disability can happen to anyone. It can strike as an unwelcome visitor when you least expect it. It is especially serious for those who are family breadwinners because long-term disability effectively snuffs out the earning power of their human capital.

Many people are totally unprepared for disabilities and the financial consequences that can befall them. Indeed, certain groups of workers, independent contractors, for example, can be especially prone to damaging financial conditions if disabled.

Protect your income. If you are concerned about the problems that disability may pose, please research disability income insurance.

Basics of a Disability Plan

In short, a disability insurance policy pays a portion of your income because of an injury or illness. There are two main types: Short-term and long-term. Short-term, typically replacing 60 to 70% of income, can provide covered payments for up to one year. Long-term disability insurance generally replaces 40 to 60% of income. Its benefits end when the disability ends. Different insurance policies define “disability” in different ways, so it pays to read the details of any given plan and partner with an insurer that has integrity and happy clients.

Procuring Disability Insurance

Individuals can procure disability insurance through a group insurance plan provided by their employer or by purchasing it as an individual policy from an insurance agency. Generally, group policy insurance is part of a total compensation package offered by some companies, typically large, well-established firms, in order to attract and retain quality employees. Other companies, generally newer and smaller ones, do not offer disability coverage to their employees.

Most self-employed individuals, such as independent contractors, entrepreneurs, and other work-for-yourself folks, buy disability policies privately from an insurance agent.

You are responsible for protecting your income. Disability insurance may be one of the most important components of your protection plan.