The Important Benefits of Disability Insurance
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Disability insurance is a type of insurance that seems overlooked by many people today. As we work jobs that are seemingly less dangerous, the possibility that something could happen also feels more and more remote. As per the statics reported by U.S Census Burea, there were around 8.6% people having disabilities in Sacramento County, California in 2013-2017. So, you can think how important is for these people to think about Disability Insurance.
However, the truth is that, like other forms of insurance, disability insurance is designed to help all kinds of people, not just those who feel at risk. Since accidents can and do happen every day, disability insurance will help you feel safer, more secure, and help take care of you or a loved one when the unthinkable happens.
Disability insurance is designed to offer varied benefits for different people. Here are just a few benefits of getting a life insurance policy that’s right for you. Remember, it is important to talk to qualified insurance representatives to learn about the right disability insurance or insurance package that’s best for you and your family. With the right coverage, you will be better protected and have the help you need in case something happens.
1. It’s a Form of Financial Support
At its core, disability insurance is about giving you financial coverage in the event of you becoming disabled, and to help you return to work if possible.
Policies will ensure that you still receive an income when out of work due to a disability. In general, policies will replace 60 per cent to 85 per cent of your regular income up to a maximum amount. This can apply if you are temporarily out of work or if you are permanently disabled due to an injury or illness.
The cost of disability insurance depends on your provider and your plan. Some policies can cover you for injuries without a medical exam as well, and your insurance will still be valid even if you switch careers. Finally, your disability plan can be with you right up until retirement. Insurers cannot cancel your policy without your consent up until you turn 65.
2. It Can Help with Permanent Disabilities
Permanent disabilities bar someone from making an income and, coupled with medical costs, this can mean extreme financial duress at a time when you should be focused on recovery and getting better. Disability insurance will help you have a safety net while you retrain for different work or adjust to your new status quo.
In general, long-term disability insurance benefits start when short-term benefits, sick leave benefits or Employment Insurance benefits end. These will usually replace between 60% to 70% of your normal income. The specific amount usually depends on the amount for which you were insured on the date of your incident, minus any other benefits you received as a result of your disability.
While every plan is different, most provide benefits for two years and may continue afterwards if you are unable to work any other type of job (not just the job you were trained for).
3. A Solution for Temporary Disabilities
On the other side of permanent disabilities is temporary disabilities, when you suffer an injury or accident that makes you unable to participate in the workforce for a short amount of time. Most plans will cover you for up to six months.
Generally, if your employer has a short-term disability plan, you have to go through that policy. If you personally do not have short-term disability coverage and your employer does not offer a plan, you may be eligible for EI sick benefits. This will depend on if you have used all of your sick leave and on the number of hours you have worked.
Note that your employer is not legally obligated to provide paid sick leave.
In general, you should inquire with your company’s HR personnel or equivalent position about short-term disability insurance. If it is not provided, contact your insurance provider to find a plan that’s right for you.
4. You Can Customize Your Plans
If you are without disability insurance, you should know that there is a right plan for you, one that can be customized to fit your needs, your situation and your budget. You can get in touch with Sacramento insurance brokers, if you're in that place or contact one nearby, to detailed process to customize your insurance plan more precisely.
This will help you keep your coverage when you change employers, know that your compensation can be adjusted to the current cost of living, and help you collect tax-free benefits if you become disabled.
Remember, the right disability insurance plan for you starts with research.
Peace of mind and a plan in case something happens are important. Make sure that you find the right plan for you, your family and your future.
