Most people are glad to have health insurance benefits through their employer. After all, it is pretty easy to assume that sooner or later a person might become ill or injured, necessitating a trip to the doctor’s office or hospital. If a person has health insurance, they can rest easy knowing that at least a portion, if not most, of their medical expenses will be paid through their insurance policy.
However, there is another type of insurance a person’s employer may offer or can be purchased individually that should not be overlooked: short term and long term disability insurance. After all, no one can predict the future. In fact, the U.S. Census Bureau reports that approximately 10 percent of all individuals in the nation suffer from a severe disability. Such a disability could prevent a person from working for an extended period of time. During this time, a person could burn through their paid sick time, paid vacation time and personal savings, leaving them in the precarious situation of being unable to work but also, therefore, not getting paid. A disability insurance policy can often provide at least a certain percentage of the insured’s salary in such situations, providing them with the financial lifeline they need during a difficult time.
People might be concerned about how much disability insurance will cost them. There are a number of variables that determine how much a disability insurance policy will cost. One of these is the waiting period starting with the onset of the insured’s disability and ending when the individual will start receiving payments under the policy. The greater this length of time is, the less the insured will pay for the policy. The length of time that the insured will receive benefits also affects the cost of the policy. The longer the benefits period, the more the policy will cost. Also, the lower percentage of one’s salary the policy will cover, the less the insured will pay. Finally, how the policy defines “disability” will also affect its cost.
As this shows, disability insurance can be very valuable. Moreover, workers should be aware that there are ways to control the costs of such insurance. That being said, sometimes a person’s claim for benefits will be denied. When this happens, a person might want to seek legal help in order to appeal such a denial.
Source: WiseBread, “4 Things You Need to Know About Disability Insurance,” Matt Bell, Aug. 2, 2016