Disability Insurance

Insurance planning can help your life when expectations for the future fall through. Disability insurance, in particular, can provide a monthly stream of revenue if an accident or extended illness occur.

Disability insurance replaces part of the income lost due to a temporary or permanent disability. This insurance is meant for the working person who wants to reduce the negative impact a disability may have on gross earnings. Employers often offer group insurance and individuals can purchase coverage on their own as well. These policies differ on how soon payments are initiated after a claim as well as payment duration.

Two categories of disability insurance are available. Short-term policies pay benefits soon after an accident or sickness occur but only for limited duration. Long-term policies make you wait longer to get the benefits, but are paid out much longer. An insured person can have both short and long-term coverage although payments do not typically extend past retirement age. Some policies do contain provisions for lifetime benefits.

Group disability policies generally replace only a part of lost earnings, but coverage can be magnified with a supplemental policy. Majority of injuries leading to disability occur off the job, so workers compensation insurance offers no assistance for accidents that happen during off hours.

A large percentage of workers experience temporary or permanent disability before retirement. This coverage is most essential because earning potential of the insured person is likely the greatest asset.