How Does Disability Insurance Protect the Subscriber?

The Importance of Disability Insurance

Many people understand the importance of insuring their home, their cars and other valuable possessions. However, most people do not realize the importance of insuring their income, as well, when it comes to protecting them and the people that they love in case they become disabled and are not able to work for a period of time.

Thinking Ahead

Many people don't take the time to envision their future and especially in the sense of envisioning something negative happening to them. However, life is not just a bed of roses, and unfortunate things can and do happen unexpectedly. There are times when a person's life is suddenly interrupted with sickness or a death in the family or an experience that results in a disability.

According to United States Department of Health and Human Services study in 1984, one in three people between the ages of 35 and 65 will suffer from a long-term disability for longer than 90 days throughout his working days. Because no one really knows what may happen in his future, it's a wise decision to have disability insurance to protect your income in case of a disability. Having disability insurance gives the subscriber peace of mind that his family will be taken care of during the worst stage of the disability. Disability insurance allows the subscriber's family to stay afloat and financially secure while recuperating.

Anyone who does not have sufficient money saved up for unexpected troubles in life really needs to have disability insurance, if at all possible, to meet the monthly household expenses. However, even those who are fortunate enough to have money saved up may still consider having disability insurance to avoid tampering with their nest egg.

Protecting your income from loss of wages is vitally important. There are many families who have tremendous debt and very little, if any, savings at all. These are the people who especially need to have disability insurance, but oftentimes can't even afford it because of their modest incomes and debt situations.

Types of Disability Insurance

There are government disability insurance programs that cover subscribers if they become disabled. Some people believe that they can simply visit the Social Security Administration and apply for Social Security Disability benefits if they become disabled; however, these rules are very strict and oftentimes, more than half of the applicants are denied disability benefits when they apply for the first time.

Some people believe that workers' compensation is the answer if they experience a disability. However, workers are only eligible for disability benefits if the disability or injury transpired due to work.

To make sure that your income is adequately protected, it's a good idea to obtain disability insurance either through your employer if offered, or purchase an individual disability insurance plan. Individual plans may cost more; however, they may also offer more liberal benefits in comparison to group policies

What To Look For in A Disability Insurance Policy

When shopping for disability coverage, there are some things to consider before buying, such as what your benefit period will be. The longer the time period you select, the more expensive the cost will be. The cost of the policy is also decreased by choosing a longer waiting period before benefits can begin to be collected. Depending on what you can afford, you may want to consider adding your own occupation coverage which covers you also when you are not able to work in your present occupation as well. You may also want to add residual benefits that provide the subscriber with the difference between your pre-disability income and post-disability income after you have become disabled. Adding and signing a non-charitable contract ensures that your policy will not be canceled and nor will your premium be increased as long as you can make payments. It's important to consult with a qualified financial adviser to find out what type of policy best fits your needs.

If a person can afford to include disability insurance into her budget, acquiring disability insurance to protect income is a very wise decision to make for one's self and her family.

Resources

• Disability Insurance Could Help Protect Your Earning Power
• Disability Insurance