How to Protect Your Paycheck With Insurance
If you become injured or seriously ill you may be unable to work, but you will still need money to cover your medical bills and your other daily living expenses. Disability insurance is one way you can protect your paycheck. This insurance will not protect you if you are fired from your job and unable to find work. It can protect you if you are unable to work, though. Applying for Social Security can take a long time and not everyone is approved.
Other People Are Reading
Instructions
-
-
1
Contact an independent insurance agent to find rate quotes for both short-term and long-term disability insurance. Ask friends for a referral to an agent they trust. Short-term disability insurance will cover expenses if you are going to be out of work for a short amount of time, such as for maternity leave or the first few months of your disability. Long-term disability coverage usually does not begin until you have missed at least six months of work already. It can last indefinitely, although the policy may have limits listed in it.
-
2
Check to find out the rates through the insurance program at your work. The downside to this is that if you lose or change your job, you will lose the insurance coverage; purchasing it through an independent dealer ensures that the insurance will follow you where you go.
-
-
3
Determine how much of your current income you need to insure. If you are not working, you may need less income to cover the cost of commuting and other work-related expenses. However, your medical expenses may rise and you might need more money than you originally thought.
-
4
Choose the plan with the best rate and coverage options. Generally this means paying a slightly higher premium for better long-term coverage.
-
5
Keep the policy on file and pay your premiums on time. If you do not pay your premiums you may lose the coverage, which can be devastating if you do need the insurance.
-
1
Tips & Warnings
It can be difficult to qualify for Social Security disability payments. Additionally, the payments are generally less than your salary. It is important to have your own insurance so you can live comfortably.
