Five Reminders About Long Term Disability Income Insurance
Long Term Disability Income Insurance
|
 |
Long term disability income insurance can protect a person from financial difficulty should he or she ever become injured or ill and be forced to take off work. If there were no such protection, the results would be disastrous. Homes would be lost, bank accounts would be emptied out and much money would be lent out and borrowed in the name of compassion. And that's the way things are—provided a person willfully lives without any form of long term disability income insurance. Before you assume that you really don't need to insure your income, consider these five reminders.
1.Social Security Disability Is A Long Wait
And a lonely one, considering that 50% of all Social Security claims are denied. They are often denied because of a technicality, since there are strict definitions as to what constitutes a disability. It's true that you can appeal a denial but that process is involved and may involve several months before you see any progress. Some disability cases have taken over two years to resolve. That's a long time to be without any form of income or at least any long term disability income insurance.
2.Workers Compensation
If you can get workers compensation instead of long term disability income insurance that's great—you've certainly suffered enough for it! However, workers compensation will only cover you if you are injured during working hours or get sick as a direct result of your job. If you get injured outside of work or become ill for unknown reasons, then long term disability income insurance is your only recourse.
3.Group Disability Insurance Has Disadvantages
Long term disability income insurance provided by your employer is much better than no coverage at all, of course. Group insurance has its fair share of advantages. It's less expensive, easier to apply for, and the money is taken directly from your check making it the most convenient way to protect yourself. But group disability insurance doesn't offer much in the way of flexibility; the insurance company and your employer are the ones calling all the shots here. Furthermore, all the long term disability income insurance you would eventually receive is taxable in this case.
4.Disability Income Is Limited To 45% to 60% Of Your Check
There will be a loss even in the best case scenario. Having only half of your paycheck won't maintain your current living standard—but will help you to pay major expenses. The other loss will have to be reconciled by cutting costs elsewhere, unless you can look into partial disability. There may be a need to re-budget your finances even after the process successfully goes through.
5.Don't Be Too Hasty When Shopping On Line
Shopping on line for an insurance policy does make it easier. You can search for the right plan coverage through hundreds of insurance companies within minutes. However, don't let this simple process fool you. Continue to research your plans and compare quotes until you find the best deal. Otherwise you could be settling for the first policy that comes along and be paying too much.
|
