VIEWS: 6 PAGES: 1 CATEGORY: Personal Finance POSTED ON: 4/10/2012
Flexible,Affordable,Disability,Insurance,How to Find Flexible, Affordable Disability Insurance
Life is unpredictable and while it may be carrying on smoothly right now, there is no guarantee for the future. Currently, you may be able to provide for your family, give them a comfortable life and financial security, however, illness and accidents can change that forever. Your life insurance policy safeguards their future in the aftermath of your death. But what if illness or an accident doesn't take your life? What if it leaves you emotionally, psychologically, or physically incapable of bringing in the same paycheck? This is where disability insurance comes into play. Many employers provide group disability insurance because several states in the US make it mandatory for employers to at least provide short term disability liability coverage. However, even if they do, it may not be enough. Firstly, there is typically a cap of $5000 per month or $60,000 a year. Secondly, they tend to cover only up till 60% of your salary, that too without bonuses. Thirdly, most of these plans do not cover you for more than five years. So even if your employer offers you benefits, you may want to supplement this with an individual policy. You cannot get disability insurance for the entirety of your salary because that often leaves a person with no motivation to go back to work. However, getting that 10- 20% of disability coverage over and above the 60% your employer gives you will go a long way in supporting you financially in the event of a crises. Some experts even suggest that you opt out of your employer plan and purchase a more flexible, through individual policy that will protect you no matter how many times you change jobs. An individual plan is tax-free, does not get cancelled out by other benefits such as SS, can cover up to 80-90% of your income, and you don't have to go through a lengthy arbitrary procedure to take action against your insurance provider if they deny claims, or fail to give you the service you need. You should look at the different policies offered by different providers to find the one that fits your needs best. Short-term disability insurance will cover you for up to six months of illness or injury, and give you almost 100% compensation, and begins after you have run out of sick leave. Your long term disability insurance picks up where your short term insurance ends, and with the right policy can continue to support you until you are 65 years old. If your profession is high paying and specialized, you should purchase the special life insurance policy termed as own-occupation coverage. This means that even if you are able to and choose to work in another profession that pays less money, but cannot continue to perform the same specialized function that you did before your disability, you can continue to be covered by your private long -term disability insurance to cover the gap in income. There are a few things you should pay attention to when purchasing your policy. Firstly, purchase a policy that is non-cancellable until you are at least 65 years old, which guarantees that your premiums remain constant as long as you they are paid in time, and continues to protect you at least until you are of retirement age. Do not purchase an accident-only policy, or a policy that excludes pre-existing medical conditions or dangerous activities, unless you are sure that there is absolutely no possibility of either. If within your budget, get a 'cost of living' policy. It will protect your finances from the effects of inflation in the future. While most of us consider car and life insurance quotes a worthwhile investment, we hardly ever take disability insurance into account. However, this could turn out to be a huge mistake. According to the Social Security Administration, Fact Sheet published in March, 2011, over 1 in 4 of today's 20 year-olds will become disabled before they retire. And relying on social security or worker's compensation may not be the smartest move; according to the Social Security Administration, Disabled Worker Beneficiary Statistics, 65% of initial SSDI claim applications were denied in 2009. So while it may seem like a heavy expense, purchasing a disability insurance policy could is not just advisable, but in some cases, absolutely necessary. About AccuQuote: AccuQuote is a leader in providing term life quotes to people across the United States. In 1986 it began operating with a single goal: to make the process of buying term life insurance as easy as possible for its customers. Their experienced professionals consistently deliver the most affordable term life insurance rates by comparing thousands of life insurance policies from dozens of top-rated carriers.
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