It seems like everyone is talking about life insurance needs but neglect the consideration of disability insurance. Did you know you are more likely to get injured on the job and not be able to work and draw a pay check than you are to be injured on the job and die because of that injury.
When you are injured your bills do not stop coming, the mortgage, electricity, water, gas, food, automobile payments, health insurance, etc. still have to be made whether your able to work or not. This could be a tough break for most of the working population, who are usually living from paycheck to paycheck just to make ends meet.
For some reason we are not informed about this scenario until we are smack dab in the middle of a life changing catastrophe like an injury, and life doesn't stop. There are no detour signs in life that are easy to see like "Stop, you are about to be injured and will need something to supplement your income while you are down...this injury will happen in 5 days...so be prepared." If only life were that simple.
But, we can be prepared and informed. So, let's look at what a disability policy will do for you. First, it will pay you a monthly paycheck for the down time you are experiencing while you are healing which of course is the best thing to help pay your bills that are still coming in.
With disability insurance there are varied options available for you to consider. Your benefits will be based on your occupation and gross monthly income. The payout in monthly checks is a percentage of your gross monthly income, it will not pay 100% of your income.
There are elimination periods to consider like 30,60,90,180 days or longer. The elimination period is the time from when you are first injured to the time that you get your first paycheck. The longer your elimination period the lower your monthly disability premium will be.
The two common disability plans available are short term and long term disability. The short term plans usually have a benefit period of 6 months. The long term plans have a varied benefit period of 1,2,5, or 10 years, or to age 65. You choose the length of coverage when you set up your policy.
Optional benefit riders are available as well to be added to the policy. Some examples are: Return of Premium Rider (Surrender Value Rider) which will return all your premiums back to you at age 65. Another example would be the Cost of Living Adjustment Rider which will allow for inflation adjustments in your benefits, as well as many other optional riders.
It's important to ask yourself questions as you journey through life to keep yourself prepared for all of life's challenges and we all face them. If you did sustain an injury that would not allow for you to work, how long could you live your current lifestyle. Basically how would you be able to survive financially, who or what have you placed in your life to be a helper when the road gets tough....Disability insurance can be a very valuable asset when you are facing a set-back.l
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