Disability Insurance
When most of us think of insurance, we usually think of car insurance, life insurance, homeowners insurance, and health insurance. But although this list is fairly comprehensive, it in no way covers all the risks that can be faced by each of us every day. In fact, there's one risk that goes totally unrepresented in this list... what can happen to a family if the major breadwinner becomes disabled. Thankfully, the insurance industry now offers disability insurance. Disability insurance companies in New Jersey now providing policies that can protect you, your loved ones, your property, and your way of life in the event you are disabled and unable to work. Disability insurance is just like any other insurance policy; it provides protection. Each year, accidents, injuries, and illnesses render millions of Americans unable to work, and this can mean utter financial ruin for them and their families. Disability insurance (also referred to as 'DI') is an extremely beneficial aid in such situations.
Most people probably think that, if they were to become disabled and unable to work, they'd receive SSI, or Supplement Security Income, from the Social Security Administration. This is not necessarily the case. In fact, many people who have become what they, themselves, deem unable to work are denied SSI every year for one reason or another. That's why it is extremely beneficial for all working individuals to have insurance that includes a disability policy. Disability insurance is a type of health insurance that pays income, typically on a monthly basis, to its policy holder in the event they've become unable to work due to accident or illness. And, though many of us typically think there's not much chance we'd become disabled, recent studies have shown that every American has a better-than-30-percent chance of becoming disabled before reaching retirement age. The last thing anyone needs when they're facing a catastrophic event that has left them disabled is to have to worry about how they're going to pay bills, buy food, and maintain a decent lifestyle. That's what disability insurance is about... protecting your lifestyle and preserving your peace of mind.
The two main types of disability insurance plans are short-term and long-term. Short-term disability insurance plans typically kick in as soon as you're unable to work. These plans usually pay anywhere from several days to several months, and often there is no waiting period involved with a short-term disability insurance policy. Long-term disability plans can last for a year, 2 years, or even more, depending on the policy chosen, and up to age 65 or 70. There typically is a waiting period of anywhere from 30 to 90 days, which is why it is often beneficial to include short-term and long-term disability insurance in your financial plans.
It's important to note that some DI policies do not pay the entire replacement value of your income, but pay a percentage, usually up to 80 percent. It's also important to note, however, that most DI policies pay that percentage on the gross, not net, income that you earned while you were able to work. It is possible, however, to purchase supplemental disability coverage in order to fill in any gaps that a DI policy may present. Additionally, different DI plans offer different coverage and features, just as health, life, and other types of insurance policies do. For instance, you might consider purchasing a waiver of premiums, which means your premium payments will stop while you're disabled. This feature typically will continue throughout the entire duration of your disability. It's best to consult with an agent at a disability insurance company for additional details regarding which DI plan features would best suit your needs.
If you've never thought about having a disability insurance policy, ask yourself this question: Why is it that you don't think twice about insuring your car and your home, but you've never considered insuring the means of paying for those things? Disability insurance is such a simple concept, and yet its purpose is truly profound... to insure that you'll always have the income necessary to maintain your ability to care for yourself and your loved ones in the manner to which you're accustomed. For more information about how disability insurance can help you and your family, contact a disability insurance company to have all your questions answered.
Most people probably think that, if they were to become disabled and unable to work, they'd receive SSI, or Supplement Security Income, from the Social Security Administration. This is not necessarily the case. In fact, many people who have become what they, themselves, deem unable to work are denied SSI every year for one reason or another. That's why it is extremely beneficial for all working individuals to have insurance that includes a disability policy. Disability insurance is a type of health insurance that pays income, typically on a monthly basis, to its policy holder in the event they've become unable to work due to accident or illness. And, though many of us typically think there's not much chance we'd become disabled, recent studies have shown that every American has a better-than-30-percent chance of becoming disabled before reaching retirement age. The last thing anyone needs when they're facing a catastrophic event that has left them disabled is to have to worry about how they're going to pay bills, buy food, and maintain a decent lifestyle. That's what disability insurance is about... protecting your lifestyle and preserving your peace of mind.
The two main types of disability insurance plans are short-term and long-term. Short-term disability insurance plans typically kick in as soon as you're unable to work. These plans usually pay anywhere from several days to several months, and often there is no waiting period involved with a short-term disability insurance policy. Long-term disability plans can last for a year, 2 years, or even more, depending on the policy chosen, and up to age 65 or 70. There typically is a waiting period of anywhere from 30 to 90 days, which is why it is often beneficial to include short-term and long-term disability insurance in your financial plans.
It's important to note that some DI policies do not pay the entire replacement value of your income, but pay a percentage, usually up to 80 percent. It's also important to note, however, that most DI policies pay that percentage on the gross, not net, income that you earned while you were able to work. It is possible, however, to purchase supplemental disability coverage in order to fill in any gaps that a DI policy may present. Additionally, different DI plans offer different coverage and features, just as health, life, and other types of insurance policies do. For instance, you might consider purchasing a waiver of premiums, which means your premium payments will stop while you're disabled. This feature typically will continue throughout the entire duration of your disability. It's best to consult with an agent at a disability insurance company for additional details regarding which DI plan features would best suit your needs.
If you've never thought about having a disability insurance policy, ask yourself this question: Why is it that you don't think twice about insuring your car and your home, but you've never considered insuring the means of paying for those things? Disability insurance is such a simple concept, and yet its purpose is truly profound... to insure that you'll always have the income necessary to maintain your ability to care for yourself and your loved ones in the manner to which you're accustomed. For more information about how disability insurance can help you and your family, contact a disability insurance company to have all your questions answered.