Not everyone believes they have a need for a disability insurance policy. The fact is, everyone needs a disability insurance policy of some type. Many people are under the impression that disability is often caused by accidents. It has been proven, however, that most such cases are caused by illness, not accidents.
Understanding what disability insurance covers and how it works will help you determine how much insurance you need.
Understanding Your Risks
Everyone experiences some degree of risk when it comes to disability. It is estimated that one-fourth of today’s workforce will experience some type of disability over the span of their entire career. Disability can be caused by an injury, but in most cases, it is the long-term recovery of an illness that leads to the necessity for disability insurance. Because the risk surrounding disability and how long the term may last is unknown, most professionals recommend having a policy in place that provides at least 75% of your average income every week.
Long-Term Disability
Long-term disability normally starts anywhere from two months to a year after the illness or injury occurs. Every policy is different. Talking to an insurance agent will help you determine where your short-term disability will leave off and your long-term disability will begin. There are many cases where a person’s recovery takes longer than was first thought. This is when the short-term disability will convert to a long-term policy so that you will continue to receive your benefits for as long as is needed.
Short-Term Disability
Short-term disability usually only lasts for a few weeks. In most cases, eight to ten weeks is all that is allowed for a short term disability. This is about the same time frame it takes for most injuries to heal and illnesses to run their course. When short-term disability runs out, claims are transitioned to long-term disability. Short-term disability is often used after various types of accidents. Knowing how long it takes for the body to heal from certain types of injuries makes it easier to decide which type of claim you should file.
Caring for Your Family
If you are off of work due to an illness or injury, your income will be dramatically reduced. Having disability insurance (either short or long-term), will ensure that your family continues to be cared for. Although you won’t be getting your full paycheck each week, you can choose to receive up to 80% of your wages depending on which policy you choose.
Buy It While You Are Young
When it comes to purchasing disability insurance, it pays to buy your policy as early as possible. Buying insurance while you are young and healthy gives you the opportunity to receive the lowest rates for the best possible policy.
Do you have additional questions about your disability insurance coverage? If so, then contact the experts at Randy Jones Insurance Services in Pleasanton, California. Our dedicated team is eager to assist you with all your personal insurance needs today