p>Insurance is a part of life for most people in our nation. One type of insurance that many people do not take out but can be very beneficial is disability insurance. It is important for workers to know what a good disability insurance policy looks like, so they can decide whether to take advantage of this important benefit.
First, a disability insurance policy will provide a definition of what it means to be totally disabled. Some say that a worker is totally disabled only if they are unable to perform any work duties in any job whatsoever. However,other disability insurance policies state that a worker is totally disabled simply if they are unable to perform the job duties of their specific occupation.
Another part of a disability insurance policy to note is whether it has coverage it for those who are only partially disabled or are recovering. In general, these benefits are proportionate to the amount of earnings lost because of the illness or injury, and provide the worker with the financial resources needed while they are in the recovery process.
Also, workers should take a look at what kind of “riders” their disability insurance offers. For example, some policies will provide the worker with more coverage as the worker’s income increases. Some policies will also make cost of living adjustments to the amount of benefits a worker is eligible to receive. Some policies safeguard contributions a worker makes to a retirement account. And, some policies protect payments the worker made towards his or her student loans.
There are other advantages to look for in a disability insurance policy. For example, some policies are portable, and will cover a worker if her or she changes jobs. Other policies are non-cancellable and are guaranteed to be renewed until the worker is 65 years old. Finally, some policies are age-based, meaning that a worker will pay less for them if they purchase them while they are still young.
As this shows, disability insurance policies can have many advantages. That being said, it is important for workers to do their research, so they can purchase the policy that best suits their needs.
Source: Daily Nurse, “Protecting Your Most Valuable Asset: The Ins and Outs of Disability Insurance,” Kyle Richert, Dec. 14, 2017