Health Insurance

Disability Insurance

In this section, we cover everything you need to know about disability insurance. What it is, types of disability insurance, and how it works.

What is Disability Insurance?

Disability insurance is a type of insurance that covers a significant portion of your income in case something horrible happens to you, and you can no longer work. While the chance of missing months or even years of work because of an illness or injury may seem remote, especially if you are still young, the reality is quite different.

In fact, the Social Security Administration warns that at least one in four 20-year-olds risk suffering a disability for at least 90 days before they reach 67 years. While you may never think that this is going to be you, it is always good to be prepared in case the unexpected happens.

A disability insurance plan serves as an excellent long-term solution that goes beyond a three to six-month emergency fund. This is important not only to you but also to people who depend on your income.

Contact Insurance Master Today for Your Disability Insurance Policy

Think about what will happen if you become disabled and can no longer earn income. Are you ready to lead a miserable life just because you did not have a disability insurance policy? Probably not. Here at Insurance Master, our primary objective is to help you find an affordable disability insurance policy that will take care of your needs when the worst happens. Contact us today and let us help you find the right disability insurance policy that suits your needs.

What Are the Different Types of Disability Insurance?

There are two types of disability insurance policies that you need to know. Although both of them basically do the same thing in how they replace your income, a few differences exist between them. Here is how they stack up:

Short-term disability insurance: A short-term injury insurance policy is designed to replace a significant portion of your monthly income for a short period. The period is mostly between three to six months. Most people get their short-term disability insurance plans through their employers, but you can still get an individual policy through private insurance brokers such as Insurance Master. Short-term disability insurance covers 60-70% of your monthly income and costs between 1-3% of your annual salary. In case you suffer a disability, you can get your first payout approximately two to three weeks after the doctor confirms you have suffered a disability.
Long-term disability insurance: Long-term disability insurance is designed to protect you if you are out of work for a relatively more extended period. It can be one year or more. Whether you work at a construction site or front desk, you will want something to protect you financially in case the worst happens, and you can no longer go to work. When you look at the numbers and long-term benefits, long-term disability insurance is the best. Most long-term disability insurance plans cover between 40 and 60% of your monthly income, and it will only cost between 1 and 3% of your annual income in premiums. Perhaps, the only downside of this plan is the period it takes before you receive your first payout in case you become disabled. Usually, the average it takes to process a long-term claim is three months.

How Does Disability Insurance Work?

Disability insurance comes in various forms, and you can easily obtain your policy from a wide range of providers. You get an opportunity to work with professional and licensed insurance agents if you choose to buy your policy through Insurance Master.

The price of a disability insurance policy varies depending on the benefits you will enjoy, the elimination period, and how strict the definition of a disability is under your plan. Keep in mind that each policy may have its own definition of what qualifies to be classified as a disability. Therefore, it is essential to read and understand the terms of your policy before you buy it.

The two most common definitions of disability are “own occupation disability” and “any occupation disability.”

For “own occupation disability,” you will be considered disabled if you can no longer work at the occupation you had before you became disabled. For instance, a medical surgeon with severe hand tremors who takes up a job as a lecturer at a university would still be eligible for benefits under the “own occupation” policy.

For “any occupation disability,” you are considered disabled if you are unable to perform any job at all. While this is a relatively harder policy to claim benefits from, the policy is also cheaper than the “own occupation” policy.

PS: Keep in mind that disability insurance does not cover your loved ones incase you die. You will need to purchase a life insurance policy for that purpose.