Open enrollment happens every year, and yet we’ve all been there reading over all our coverage options utterly confused at what coverages we should spend our hard earned money on and which we should skip. Disability insurance may not be something we often think we will need, but it protects our biggest asset, our ability to support ourselves financially.
Keep reading to learn more about disability coverage.
Do I need Disability Coverage?
Most people in America do not have enough in savings to support themselves for an extended period of time if they are unable to work due to a disability. When the question of disability insurance arises, we think of catastrophic injuries like back or spinal cord injuries, but there are other reasons you could be left unable to work for extended amounts of time. In fact, at least 1 in 4 20-year-olds experience a disability of more than 90 days by the time they retire.
Ask yourself these questions:
- Do I have enough to pay my bills and eat for at least 90 days?
- How long can I rely on my savings to maintain the same standard of living if I were unable to work?
- Am I highly skilled individual? If I suffered a physical injury, would it prevent me from working?
- How dangerous is my workplace?
Types of Disability Insurance Coverage
- Short-term disability coverage: Short-term disability coverage typically replaces a portion of your normal salary. This can typically be between 60 and 70 percent replacement for six months and one year. The waiting period for short-term disability to kick in is generally 2 weeks.
- Long-term disability coverage: this coverage replaces a portion of your income between 40 and 60 percent and up to $10,000 a month. Long-term disability ends when you are no longer disabled. Some policies can last until you are retirement age, or they may provide additional funds to help you get retrained and back into the workforce. Long-term disability coverage is meant to start after short-term disability ends which is usually after 90 days.
If you are interested in purchasing disability insurance for your business, our professional insurance administrators can help you find the right coverage.
Contact the Insurance Specialists, Inc. team today for more information.