Articles on Disability Insurance: CLICK HERE
We all have enough to worry about today, without worrying about getting sick or being disabled and not being able to earn a living
. Disability insurance is a type of insurance that has been developed to replace a certain percentage of your income in the event you are either ill or become disabled.
There are different types of disability insurance. Some are provided by the company you work for, while others may result from a policy you sign up for on your own. How much income you will have at your time of need will be dictated by the policy you choose.
Before you look for any plan become familiar with the different types of plans that are available. You need to know if the plan you are looking at is short or long term? If it is long term be aware that there are three different types.: own occupation, income replacement, and gainful coverage.
To break these coverages down, own occupation is when a person is not able to work and will never work in the same occupation again. The insurance company you have chosen will state that you are not able to ever work in your same profession and will start to pay your benefits. After some rehabilitation you may feel that you want to return to work in another field that you are now capable of doing. This type of insurance and this type alone will continue to pay your claim.
Then, there is income replacement policies. What this is, is if you choose to go back to the work place they will adjust your benefits based on the income you earn. Make sure that whatever type of policy you choose you find one that is right for you. Do not let an insurance agent make you sign up for insurance without knowing what the policy is and how it can benefit you.
Lastly, there is Gainful Occupation Coverage, it is with this type of policy you must be the most careful, it can leave you the most vulnerable at you moment of need. It is this type of policy that leads to the most number of litigation cases. In this type of insurance the company decides if you are totally disabled and not capable of going back to work. Most employers tend to choose this type of insurance. If this is the type of policy your employer has chosen, I suggest you carry another policy along with this one. If you want to have peace of mind.. .
If you have made up your mind to purchase disability insurance, take time and do your homework. You want to find the best policy for you and you and your family .Just because it is cheap doesn’t always means it is the best. Not having the correct type of policy can mean financial ruin for you and your family.
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