One of the most challenging times is if you are not able to work due to injury or illness. One supplemental form of coverage that can be a godsend in one of these situations is disability insurance. It can allow for a portion of your income to be paid to you if you are unable to work, which can be helpful to keep your family from financial danger.
Disability insurance may only pay a portion of your income, but if you are unable to work for a long period of time, even this amount can become very important. Your employer most likely offers both short and long term disability, but it can also be obtained individually if you choose. You must deliberately choose this type of coverage, as it is not one that is just given with a typical health insurance policy.
When you decide that you want to purchase disability insurance, you want to compare costs if you are buying in the marketplace. The cheapest coverage may not offer you the type of coverage that you truly need, as the income percentages can range from only 45 to over 60 percent. Taking the percentage into account will ensure that you make the right choice for both your budget now and your budget later.
Two different types of coverage are offered. The first is short-term coverage, which has a shorter waiting period, but only pays out benefits if you are unable to work for a maximum time period of six months, depending upon your policy. Long-term disability has a longer waiting period, but these benefits can continue for years. Often short-term coverage works in conjunction with long term, as it covers until the long-term coverage kicks in.
While no one wants to think about being out of work, a little preparation can make all the difference. That is why you want to think about getting disability insurance.