Disability insurance helps you to replace a major value of your income, at the time of your injury and sickness. It is identified as pay check protection. Disability insurance can provide you the security and in any unexpected event, you will receive a fixed monthly income. We all expend much on protection our fixed assets, but take lesser protection for our earning schemes. Income is the most important asset of the life. So, protecting the income with disability insurance is not only a good decision, but also an essential thing today.
How to Buy Additional Disability Insurance
Don’t know how to check options for disability insurance?
As the majority of the US employers provide short-term disability insurance, you must go for long term disability insurance. You should also read the buying tips and compare with multiple service providers before finalizing your purchase. First of all, you should determine which short term benefits are covered in your short term disability plan. Then only, you should opt for a long term benefit plan.
Secondly, you should identify how much coverage you need. A potential disability plan can replace up to 60%-65% of your salary. Thirdly, try to avoid group plans as it only covers the salary part of your compensation. In a long disability case, you will lose the chance of being paid additional incentives from the insurers. One more thing we must know is that if you pay the premiums on a pre-tax basis, you have to pay the additional tax after receiving the benefit payouts.
Are you anxious about the authenticity?
While applying for long term disability insurance, carefully read the fine printing. You must understand the difference between the words ‘any’ and ‘own’ occupation. Priority needs to be given on own occupation. Secondly, we have to check whether the policy is renewable or not. Make sure that as long as you pay timely premium, your renewal needs to be guaranteed. A few policy providers limit the payouts to the accidents, not for the illness. Our survey identified that only 12% of the long term disability insurance comes from accidents and the majority of the insurance claims come under illness. Thus, it is time to calculate your future odds and check out the tentative leading causes of long term disability. Then apply for perfect disability insurance.
Be aware of few things. Try to follow our tips.
Just keep your eyes open when applying for disability insurance. First of all, do not forget to know about the cost of living riders. Second mandatory factor is that you have to check the insurers’ strength and the past records of claim settlements. Finally, do not pay based upon the value of the coverage paid by the insurer. You should identify the critical offerings and the risk factors covered by your insurers.
You should check more than five years business records, consistency of risk mitigation and the timely payment scheme during the disability made by the companies. Make clear comparison and choose a best company for enjoying your rest of the life.