Understanding Disability Insurance

You probably wouldn't think twice about the fact thatYou also may be eligible for your company's long-term
health insurance is absolutely essential, but what aboutdisability insurance plan, if they have one. This may
disability insurance? It's just as important. No mattercover you in a situation where an injury or illness
how careful you are about job safety or stayingprevents you from working for a very long time, or
healthy, sometimes there is nothing you can do toeven for your lifetime. Check with your state laws to
prevent an accident or illness. While your healthsee what your employer is required to provide you
insurance is vital in getting you treatment, whatwith, and ask your benefits department to explain the
happens when you can't go back to work right awayplan in detail.
because you're recovering? Your bills need to be paid,While you are investigating your insurance options, you
and your family needs to eat. This is why disabilitymay wonder what some of the terms used really
insurance is absolutely necessary.mean, like 'non-cancelable' or 'guaranteed renewable'.
Disability benefits will help you with your cost of livingNon-cancelable means that your policy can never be
during the time that you are not well enough to returnchanged or canceled, unless you don't pay your
to work. They will usually not pay enough money topremiums. This helps to make sure you aren't
equal your working wages, but should be enough todiscriminated against when you are not well enough to
pay your basic bills. Almost all disability insurance doeswork. Guaranteed renewable means that the policy will
not begin immediately, but requires a waiting period ofbe the same every year, and the premiums cannot be
two weeks to several months.increased, which means that you don't have to pay
If you are expected to be unable to work at all for atmore after having a workplace accident, unlike a lot of
least a year, you may be eligible to have Socialauto insurance. If you don't understand any other terms
Security pay you disability benefits. The amount youin your policy, be sure to ask your insurance
will receive will depend on your age and how muchadministrator to explain them, or look them up yourself.
money you were making at your job.You may think that this sounds like a lot of work, but
There are also types of disability insurance that yourit's really not too difficult. Understanding the principles of
employer may offer, where the premiums are takendisability insurance will allow you to make the right
out of your paycheck. Almost all employers arechoice of an insurance policy for your unique situation,
required by law to offer short-term disability insuranceand to be reassured that your family and your home
of some sort, like paid sick leave, although the amountwill be protected in the event of sudden illness or an
of time available may vary from just a few days up toaccident on the job.
six months, or even two years.