Have you ever thought about what could happen if you get injured and are unable to work?
We’ve all seen the commercials on television, and usually don’t think twice about them. It is important to understand the basics of disability insurance, the different kinds, and which is the best for you.
You’ve fallen and you can’t get up! Or you can get up but are unable to return to work. Or you are suffering from a major illness affecting your ability to work. Will your disability insurance cover your expenses?
The chances of you or a loved one becoming disabled are higher than you probably think. Some facts:
- Just over 1 in 4 of today’s 20 year-olds will become disabled before they retire.
- Accidents are NOT usually the culprit. Back injuries, cancer, heart disease and other illnesses cause the majority of long-term absences.
Are you prepared if it happens to you? Probably not. If you’re like most Americans, you don’t have disability insurance or enough emergency savings to last 34.6 months. (Yes, that’s the duration of the average long-term disability claim.)
Disability insurance can be confusing. Types include:
- Own occupation coverage
- Any occupation coverage
- Split definition coverage
- Presumptive total disability coverage
- Residual disability coverage
- Partial disability coverage
Disability Insurance is a program managed by the Social Security Administration that insures a worker in case of a mishap. It offers income protection to individuals who become disabled for a long period of time and as a result can no longer work during that time period.
Most supplemental policies offer coverage for both injuries and illnesses. Some policies, however, offer accident-only protection and don’t cover illnesses. Also, because work-related disabilities are covered by workers’ compensation, most policies will reduce their benefits by any amount of benefits paid by workers’ compensation as well as any benefits received from Social Security and other government programs.