Disability

Let’s talk about precious disability…

If you rely on your paycheck for your household income, then you should consider purchasing disability insurance. Disability insurance can help protect your household. If you’re disabled and can’t work due to sickness or injury, disability insurance will cover your expenses. Disability insurance offers coverage that can provide money to help pay rent, car loans, mortgage, or other monthly expenses.

Disability insurance does not just cover random accidents.

These medical conditions could qualify you for disability insurance, it covers some physical injuries, a heart attack, or even cancer.

Did you know just over 1 in 4 of today’s 20-year-olds will become disabled before they hit the age of retirement?

There are two main types of disability insurance. The first being Short-term coverage and the other being Long-term coverage.

There is a short waiting period after you become disabled and before your benefits are paid. Usually, short-term disability replaces 60%- 70% of your base salary. The payout is between a few months to one year, depending on that individual’s policy.

The typical waiting period is 90 days after you become disabled and before the benefits are paid. Usually, long-term disability insurance replaces 40%- 60% of your base salary. The individuals benefit ends when the liability ends. If the disability continues, the benefits will end after a certain number of years or at that individual’s retirement age.

According to the Council for Disability Awareness a variety of factors affect the cost of long-term disability insurance

  • Your age and health: You’ll pay more the older you are and the more health problems you have
  • Your gender: Women usually pay more because they tend to file more claims
  • Whether you smoke: You pay less if you don’t smoke
  • Your occupation: You’ll pay more if you work in a job with a high risk of injuries
  • The definition of disability: The broader the definition of disability, the higher the premium. A policy that covers you if you can’t work in your own occupation but could earn income in a lower-paying job will cost more than a policy that covers you only if you can’t work at all.
  • Length of waiting period: This is known as the elimination period. You can reduce the premium by increasing the waiting period before benefits kick in.
  • Your income: The more income you have to protect, the more you’ll pay for coverage
  • Length of benefits: The longer the period that the policy promises to pay out if you become disabled, the more you’ll pay in premiums
  • Extra features: Additional features, such as cost-of-living adjustments to protect against inflation, will increase the premium

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