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Step 1
Plan Now - Once you become disabled, you will not be able to obtain the necessary coverage. In today's competitive environment, disability insurance rates are at an all time low. For the price up a meal at McDonald's, you can properly protect your family.
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Step 2
Determine Your Needs - Individual disability insurance comes in two basic types of coverage; short-term and long-term.
Typically, short-term insurance begins after you have missed 8 days of work continuously. Most policies pay approximately 60% of the income you normally earn, so don't assume that you will have enough to cover all of your bills.
Long-term disability insurance usually does not take affect until you have been out of work for 3 to 6 months (depending upon your policy). Again, the amount that is paid typically less than your normal wages.
In most circumstances, you will want to ensure than you long-term coverage kicks in the day your short-term insurance expires. This will provide a steam less transition from one policy to the next. -
Step 3
Check Your Social Security - Many people are unaware than they may qualify for early social security benefits. If you become permanently disabled, I would contact your local office immediately.
Comments
waters said
on 7/8/2009 Good information on disability insurance. 5* and recommended