What Is A Disability Benefit Insurance Product?
Disability Benefit Insurance Product
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Looking for a disability benefit insurance product? What is that, anyway? A disability benefit insurance product is also known as disability income insurance. Just as life insurance protects your family and homeowners insurance protects your home, a disability benefit insurance product will protect your income.
Think of the problems you would face if you had no disability insurance policy and suddenly became injured. You would still have bills to pay, a family to support, and possibly no way of earning income! You could take the money out of your savings account of course. But what about your future plans for retirement, tuition pay off or vacation? What if you are unable to work for over two years? Can your savings account really handle two years of monthly expenses?
What The Statistics Reveal
According to statistics, the threat of becoming temporarily disabled is actually far greater than other well known insurance risks—the kind of policies you're already paying for. It is suggested that 1 of out of every 88 homes will be affected by fire. Do you have fire or homeowners insurance? One in every 70 automobiles will be involved in a serious auto accident. We know you have auto insurance! One out of every 106 people will die and meet their maker. (Or stay dead forever, depending on what you believe)
A disability on the other hand will affect one in every eight people, before they reach retirement age. (Other reports have suggested the odds could be even one in three, if you include serious illness and short term disability situations) 50% of those who suffer from disabilities longer than six months will remain disabled for the next five years—which are usually cases involving back problems or heart disease. Finally, did you know that more people actually lose their homes because of disability instead of fire or even death?
What About Other Disability Benefit Insurance Products?
Isn't disability coverage available through the government or at least from your employer? Social Security disability is an option—provided you will be out of work for at least a year's time. However, Social Security disability benefits are difficult to qualify for, and they deny some 50% of all claims submitted, due to technical definitions of the applicant's disability. Furthermore, even if you qualify you won't start to receive payments until six months after you become disabled due to the notorious Social Security waiting period. Last and probably least, is that your payments will only be a fraction of your previous income.
As for your employer and any group insurance policy you have in place, know that only 50% of employers cover short term disability, and only 40% cover longterm disability. Workers compensation will only work for you if you are injured on the job or get sick because of work-related causes. Pension plans pay for permanent disabilities—but may also affect your retirement benefits.
If you are looking for a disability benefit insurance product then an individual policy might be your best bet. Plans are flexible and can recover as much as 60% of your total income. Start shopping today while you're still working and healthy, for the best results.
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