What Is Disability Insurance?
How long can you manage to pay your rent or mortgage, pay utility bills, or buy groceries if you don’t have your paycheck? For most people, it will not take long before you start feeling the pinch.
This is where disability coverage comes in. Consider it as an insurance plan for your salary. It ensures that in case you can’t work because of an injury or illness, you will still get an income until the time you can go back to work.
Some disability insurance policies can cover part or the full worker’s salary. Out of four workers, one person becomes disabled at a certain point in their working career. This is according to the Disability Awareness Council. The disability can be caused by injuries or accidents on the job, including other debilitating illnesses like a heart attack or cancer.
Reasons to get disability coverage
Unlike other insurance plans that cover workers when they attain a specific age, disability plans can cover approximately 70% of the worker’s salary no matter the age when the disability arises. Some employees can be covered through their employers while other have limited or no coverage at all. People with minimal or no cover may choose to purchase their policy so as to enjoy the benefits at the time when they cannot go to work due to injuries or illnesses.
Common types of disability coverage
Private disability plans often come in in two forms:
Note that individuals with a high risk or illnesses or injury, like those with preexisting health conditions or dangerous jobs are likely to pay higher premiums than others.