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Long Term Disability Insurance |
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What if you became disabled on a long-term basis and could not work and therefore were not earning an income? Do you have enough money tucked away to weather that kind of financial storm? How would you pay your bills? Would you run the risk of losing your car or your home? Would you still be able to pay your utility bills, buy your groceries and any number of other ordinary household types of things? Would the disability destroy your financial future? Think carefully about it, as the thought of becoming disabled is for everyone a frightening prospect. If you have never given it any thought then you really should sometime soon. No one can predict what their future health will be and the saying, “Better safe than sorry” is so true in this case. If you know that financially you would drown if you became disabled on a long-term basis then consider purchasing long term disability insurance to help you (and your family) manage the financial side of things.
Long term disability insurance can help you replace the money you will not earn working in relation to a long span of time, generally anywhere from three months up to a period of five years, or if you are getting on in years, long term disability insurance will halt when you turn the golden age of 65. If you have an employee sponsored health insurance plan through your workplace then take a look at it to see if long term disability insurance is an option or not. Sometimes policyholders do not even know for sure what type of health insurance they have. If you discover that you are not covered for long term disability insurance then find out how you can add this type of coverage to your policy.
If group health insurance is not available to you either because your company is too small to have it, the coverage is very limited or you are self-employed then consider getting individual long-term disability insurance on your own. Long-term disability insurance is broken down into two kinds- noncancelable and guaranteed renewable. There are also insurance policies which are more limited but still cover to a certain extent, premium or renewability guarantees. Both noncancelable and guaranteed renewable policies are the same in that the policies cannot be cancelled or be turned down for renewal purposes, as long as the monthly premiums continue to be paid as they are supposed to be. However there is a major difference- when it comes to a noncancelable policy, there is an extra modicum of security to ensure that the monthly premiums are never raised as long as they are being paid appropriately. When it comes to a guaranteed renewable policy, the monthly premiums can go up but only in the event that it one way or another affects all those who are insured under this policy and not just a select few. In general the monthly premiums when you first begin a guaranteed renewable policy are cheaper than if you chose to go with a non-cancelable policy.
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