Disability Insurance

Disability insurance is a critical piece of protection that you need to look at purchasing. This insurance is what you need to replace the lost income that takes place due to missing work because of a recurring illness, an accident, or even a serious injury. The truth is that according to the Council for Disability Awareness, nearly one quarter of workers at some point will have an affliction that causes them to miss a large amount of work.

Even worse – only 5% of those problems occur at work and are covered under worker’s compensation.

Whether you have a nest egg saved away or are living paycheck to paycheck, it doesn’t take a math wizard to see what losing a few weeks or months of income is going to do to the financial lives of the majority of people. This type of disruption can be absolutely devastating to a family’s finances and can even lead to losing a job, all your emergency funds, or even your house and possessions.

Disability insurance is your protection from this ill-fate.

Both Short-Term & Long-Term Plans Are Available

Terms are going to vary immensely between different plans, but there are plenty of options for short-term disability and long-term disability depending on what your anticipated needs will be. These policies tend to pay out their benefit once a month for a set period of time. This is activated when the insured can’t work due to accident, illness, or injury and periods can be as short as a few months or as long as a year or more.

Plans can be customized to meet your largest worries and make sure you and your loved ones are covered in the event that this happens.

Consider An Accidental Death & Dismemberment Plan

This plan is just like it sounds like. It helps pay a set amount to the beneficiary or his/her family in the event of an accidental death. This can be taken out as its own policy or added to another one being taken out, but it is a critical bit of coverage that shouldn’t be ignored.

Accident Only Disability

This disability insurance plan deals only with accidents (no illnesses or injuries) and it begins to pay a monthly stipend to the policy holder once they are disabled because of an accident. This allows them money to live off of while recovering and attempting to get back to a place where they are healthy enough to go to work once again.

Business Overhead Expense

This is a special type of disability insurance that covers business expenses that are created from running an office. This is another crucial bit of coverage for business owners or the self-employed as this policy will cover the operating expenses like utilities, basic office costs, and rent if the covered is unable to work. Depending on the coverage this doesn’t have to be just covering accidents. It can also cover illness and/or injury, as well.