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What Is Disability Insurance?

A disability insurance policy can add to your financial security by paying you an income when you are prevented from working due to a covered sickness or injury. Disability insurance is the insurance that pays you when the goose us unable to lay any more golden eggs. Car insurance and homeowners insurance provide protection for things purchased with our golden eggs. Medical insurance can pay to help heal the goose, but it does not pay for the loss of income that often occurs when the goose is sick or injured.

How Much Coverage Can You Get?

Insurers will typically pay up to seventy percent of your gross income. If you pay the premiums with post tax dollars, the benefits you receive when you have claims will likely come to you on a tax free basis. If this is the case, you will probably find that these terms mean you get an amount that is very close to what you were paid after taxes.

Many of us are working more than one job to make ends meet. Although we may not want to pay for an additional insurance policy, we know that without monthly benefits from a disability policy, we may be in rough shape if we get hurt or sick. We fear that we will be unable to provide for ourselves and our families once our employers stop paying us. This fear is largely justified.

Disability Insurance Why Buy It?

Since you are more likely to be disabled before you reach retirement age than you are to die before you reach retirement age this is a very important type of insurance. Even a relatively short period of time without an income may destroy any savings you may have and could potentially put you deeply in debt.

Many people are covered by policies that they get through their place of business. However, when they leave their employers, they often forget to research individual policies. Many of the same insurance companies will provide long and short term disability insurance plans directly to you. Insurers will provide coverage and pay claims to individuals whether or not they are part of a group.

There is no denying that other types of coverage, such as health and life insurance are important. However, many would say that disability insurance protection is more important than life insurance. Why? Your family's living expenses are likely to be higher while you are alive. Your health insurance may cover your medical costs and thereby keep you alive for years, and this by and large is a good thing. However, since your survival means that your family will have costs for food, clothing and shelter replacing a portion of the money you once earned can make a big difference.

What About Government Programs?

You may qualify for a state-based program or social security benefits when disabled. However, depending on being eligible for these programs after your accident or illness may not be a good strategy.

You will probably find the waiting, the income limitations and the criteria use to determinine eligibility a bit much. The income that you receive from these plans may be less than what you require to keep up with your daily expenses and to make payments on your mortgage. You may complete form after form and then have to wait a long time, even years, before you get start receiving benefits.

You probably hope to retire one day; few us want to be workers forever. However, you probably want to remain an employee until you are ready to quit. You don't want to have your doctor or other medical person tell your condition and the care you need are incompatible with you keeping your job.

The answer to doing what you can to keep an appropriate amount of money coming in to your door each month includes disability insurance. You can find information about this coverage on this site. Factors including your occupation, age and income requirements all factor into the amount your policy will cost. Request disability insurance quotes on our site to get the prices and information you need to save yourself and your family from the financial impact of a long term disability.

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