Disability insurance is an insurance policy that provides you with a portion of your salary if you are too injured to return to work. It also pays your monthly salary if you are diagnosed with cancer or suffer a heart attack. The injury does not necessarily have to take place while you are on the job. The monthly payments you will receive will provide you with an amount of time that you can recover from the injury or illness. Employers include disability coverage in their benefits packages, but you may also purchase a private disability insurance policy to increase your coverage.
The Council for Disability and Awareness stated that 25 percent of people will be disabled at one point during their working lives. There is a possibility that you will be one of the 25 percent, so disability insurance is something that you need to consider purchasing.
You will have to file a claim with your insurance company after you are injured or diagnosed with a covered illness. After a 14-day waiting period, you will begin to receive short-term disability payments from your insurance company. When your short-term disability insurance plan stops paying, your long-term disability plan will begin paying you 50 to 60 percent of your salary every month.
Short-term disability insurance provides you with coverage for illnesses or injuries for nine to 52 weeks. Long-term disability insurance provides you with your salary for a much longer period. In some cases, the coverage period will last your entire life.
When you don’t have disability insurance and you cannot work because of an injury or an illness, you and your family could be in danger of losing everything you own. With disability insurance, you would receive enough money to continue paying your mortgage. You would also be able to finance your lifestyle to a certain extent, and you would be able to put food on your table while you are recovering from your illness or injury.
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