Disability Insurance
One of the best ways to protect your future earning potential and keep you and your family on solid financial ground is through a disability insurance policy.
Disability insurance steps in to help you cover expenses; it pays you a percentage of your salary if an illness or injury prevents you from working. Depending on your policy, disability insurance covers your lost income for anywhere for a few weeks to your entire working life.
You most likely purchase auto insurance, homeowners insurance and maybe life insurance to protect yourself and the ones you love. Like each of these coverage options, disability insurance should be a part of your overall financial plan.
What qualifies as a disability?
For insurance purposes, you’re considered disabled only if you meet the insurance policy’s criteria. While there are many definitions, it all hinges on how an illness or injury affects your ability to work, or how it affects your ability to earn income. When you purchase a disability policy, make sure you understand what’s covered.
Two types of disability insurance
There are two main types of disability insurance:
- Short-term policies cover disabilities that last for a few weeks or months.
- Long-term policies can provide coverage for anywhere from two to five years, or even until you reach age 65.
If your employer offers a disability insurance policy, it is most likely short term. In this case you may want to purchase additional long-term coverage on your own. This will also protect you in case you leave your job.
How Disability Insurance Works
Employees choose a maximum monthly benefit amount that meets their needs. Then, if they are faced with a period of sickness or off-the-job injury and cannot work, they’ll receive cash benefits to spend as they see fit. Benefits are paid for total disability, partial disability, concurrent disability and recurrent disability – and there is no elimination period or waiting period for a second instance of a previously covered disability. Employer-chosen riders may offer additional benefits for family medical leave, doula services, on-the-job accident disability and more.
Features
- Employees choose the monthly maximum benefit that meets their needs.
- Benefits begin the first day after the elimination/waiting period.
- Premiums are affordable and conveniently payroll deducted.
It’s Benefits:
Disability insurance replaces a portion of your income when you can’t work
If you were unable to work due to illness or injury, disability insurance can help to pay for essential expenses, including food, utilities, school tuition, mortgage, and car payments.
Most long-term work absences are due to illnesses, not accidents
According to the Council for Disability Awareness, back injuries, cancer, heart disease, and other illness contribute to the majority of long-term disability claims.
The risk of a disability during your working years may be greater than you think
In 2020, the U.S. Social Security Administration reported that more than 25 percent of 20-year-olds will experience a disability that keeps them out of work for at least a year before they reach retirement age. Fortunately, disability insurance helps you maintain a steady stream of income when you can’t work due to illness or injury. What’s more, it’s easier and less expensive to get disability insurance when you’re young and healthy.
If you do not have Disability Insurnace , don’t delay. And if you would like to learn more about Disability Insurance book a call with Ali Arayassi, call +961 71 135 324 or send an email to info@aliarayssi.com