Why You Need Disability Insurance

Most people take it for granted that they are able toso that you can make an informed decision when
awake each day and earn an income to supportpurchasing your insurance policy.
themselves and their family. The ability to beTypes of disability insurance
independent in this regard is one of your most valuableShort-term disability is as it name implies. This policy
assets. Additionally, most people do not understandmay pay benefits for two weeks up to two years.
that the chances of becoming disabled at some timeUsually, your employer provides short-term disability
during their working career are higher than they wouldpolicies.
imagine. Hence, disability insurance is available toLong-term disability as it name implies, will provide
protect your assets.benefits for an extended period. Long-term disability
Disability insurance is insurance that is intended toinsurance usually lasts about 5 years. This type of
replace your income if you should become sick,insurance will also expire when the person turns 65.
disabled, or hurt, and the illness or accident preventsSome employers will offer this type of insurance as
you from earning an income in your occupation.part of employee benefit package or will make it
Disability insurance will pay anywhere from 45% toavailable at a specific cost.
60% of your gross income during your absence fromThe two main types of long-term disability insurance
work.policies are non-cancelable and guaranteed renewable.
It is important to note however, that not every policy isA non-cancelable and guaranteed renewable policy
the same. Carefully scrutinizing the details andmeans that the insurer cannot cancel or refuse to
comparison-shopping is necessary when shopping forrenew your policy as long as the required premiums
disability insurance. The least expensive policy is notare paid on time. However, the significant differences
necessarily a good choice. The odds of being paid abetween the two policies are that with a guaranteed
monthly benefit that will cover your cost of living whilerenewable policy the premiums can be raised, but only
you are disabled are not improbable if you haveif it affects the entire class of policyholders. Under a
purchased a low-cost insurance policy.non-cancelable contract, the premium payment
The purpose of this article is to provide usefulremains in effect as stated on the policy.
information about the features of disability insurance,