Disability Insurance: Everything You Need To Know

A disability can occur at any time for any individual. It can be short term or long term. But what is it? Where does it fit in the picture and what is its purpose? Disability insurance isn’t an overly complex term, but it does have a few aspects you must understand.

What is disability insurance?

Disability insurance is the insurance plan used to cover the expenses whether medical or not of the person on whom the insurance has been taken. This is seen as a replacement for the income of the person. Disability can be short term or long term and the insurance plan will work according to the factors mentioned in the contract.

Does the government cover me for disability insurance?

Yes, the government does cover you for total disability. But if you are only partially disabled or if you have a short-term disability then this plan will not function because of its restrictive terms.

I have worker’s compensation and group disability insurance. Why do I need a separate one?

Group disability insurance and worker’s compensation are offered by the place of work of the individual or the employer of the individual. These are very beneficial as they do cover you for your disability. But, the catch here is that for worker’s compensation you need to be injured in the workplace or the disability insurance is invalid. And for both types, you need to be working with the company even after the disability unless it is the full disability. If you change jobs, you are no longer a viable candidate for the disability insurance.

What are the benefits?

While this insurance works just like any other, the main benefit is that your family doesn’t have to face any kind of sudden loss of finances. They are guaranteed a percentage of your initial income on a monthly basis. This can help cover the medical expenses as well as keep you and your family financially stable through such an unstable occurrence. It offers peace of mind financially when your health is anything but peaceful.

How do you get it?

You can avail this type of insurance by speaking to an insurance broker. They can offer the best plans for you. Insurance brokers are experts and can understand your needs and also your financial position. But, it is advisable to go to the best brokers and take advantage of their experience and expertise.