It is very true that we don’t want to think about our being disable to work, but consider this: How are you going to pay your bills if you couldn’t work? This situation is not very prominent but remember that emergency does not give pre-indications and does not give as a chance to prepare ourselves beforehand. So financial experts recommend disability insurance to cover the loss of income in such an event of emergency.
Misconceptions About Disability insurance
There are many misconceptions or we can say that wrong notions about buying disability insurance. Many, for example, think that Social Security will cover a disability and will help them in case of such an emergency. But remember: Social Security only covers you if you are unable to work at any job, not just the career you’re trained in!
Others do assume that worker’s compensations will cover them, but worker’s compensation only covers job-related disabilities. Auto accidents and illnesses aren’t covered in it.
And finally, many workers have a group disability policy through their job, and they think that’s enough. This policy is good but they provide only about 60 percent of your salary, and might cap it at a smaller dollar amount if you are highly paid. Plus, if the company pays for the policy, the benefits are taxable, further cutting into your income.
Final Saying About Disability insurance
For many people, a good individual disability policy is necessary. However, shopping for a disability policy can be tricky, for, there are so many elements to look for while buying a disability insurance policy.
When buying a policy, the most important aspects to look into are the definition of disability, the company’s stability, and the option of renewal of the policy.
What you will like to buy is an “own-occupation policy.” With this kind of policy, you are eligible for benefits when you can’t carry out the duties of your regular occupation. But with an “any-occupation” policy, you wouldn’t qualify for benefits unless you are completely unable to work at any job. Check that the policy covers both accidents and illness, according to the Health Insurance Association of America.
Other features to consider:
Residual benefits—this feature helps make up the difference in income if you can only work part-time or at a lower-paying job than your regular occupation.
Benefit period—it states the term that how long benefits will be paid.
The financial strength of the insurer is another important consideration. Look for one that’s been in business a long time and is financially stable by checking the insurance rating services—there are so many on websites itself. A few companies have reputations for not being willing to pay claims, adding that consumer complaints on specific companies are frequently posted on Internet bulletin boards.
Checking all these things will help you in buying a sound disability insurance policy.