Disability Insurance

This kind of insurance covers individuals who are out of work as a result of an injury or disability. When one obtains insurance to cover disability, one is helping him or herself to a means of continuing to collect income, even in the event of an emergency situation in which working is no longer an option. It helps someone who has had an injury or some other kind of issue that caused disability, to more easily recover in the knowledge that they are free from the worry of not making ends meet and perhaps having to return to work before being healed fully. Essentially, good disability insurance is meant to provide between 45%-65% of one’s gross income when one is unable to work. And it is tax-free.

Disability Insurance is designed to help those who cannot live normally without the income they were receiving when healthy and able. Being out of work for an extended period with no coverage can destroy many a family financially. Though many employers do offer basic disability plans, often they are not enough to afford the proper protection one might need if put out of work for months. It is important to review the employer-offered disability plan before making the assumption that it is sufficient to cover your needs adequately after an injury.  A supplemental plan can often help make up for any deficiencies in the provided plan.

Disability coverage is also great for self-employed people or those who run their own companies. When independent,  the loss of income due to a disability can be financial Armageddon, so for the self-employed it is particularly important to be sure of good and solid coverage of this kind.

When choosing a disability plan, there are several things you’ll want to keep in mind. See about the waiting periods before coverage kicks in and look into the maximum time durations of coverage by the plan. The level of premiums for the plan largely is determined by such factors. Don’t forget, though, that premium amounts are determinative of how much one gets back if one experiences a temporary disability.