Long & Short Term Disability Insurance Features and Benefits
Insurance is a must today because hectic and fast-paced life can result in unexpected circumstances, which can lead to losses.
Through an insurance policy adequate compensation can be gained by which such losses minimized to a great extent. You will find various types of insurance policies available, which make payment for different types of needs and situations from which a suitable one can select.
Why Opt For Disability Insurance?
Out of the many types of insurance available by which losses can mitigate an important one is disability insurance. It is very affordable and will cost just 1 to 3 percent of your salary but in the event of disability that prevents from working in a regular job it compensates to a great extent thus minimizing financial losses.
Different companies provide this insurance in various forms hence you have to check out the definition of disability with any of them, before signing up for any policy.
Those who are in a line of work, there they face the risk of health problems that can cause disability should take this insurance as it offers much needed compensation in the event of a casualty. Prior to availing this insurance it is vital to take a medical test and drug exam.
Disability Insurance For Mortgage
You might be wondering if it is really worth to spend money on disability insurance. This form of insurance is highly essential in the event of a disability preventing a person from working which stops an income flow thus preventing them from providing for the family.
The money gained from this type of insurance can be used to meet various expenses thus mitigating financial burden. It can be availed in the form of short as well as long-term insurance.
A question that is often posed is ….why Should someone take up disability insurance when there is health insurance to give adequate composition. Health insurance offers compensation when a person becomes sick and it brings down the medical bills arising from this situation.
However disability insurance pays out of the actual wage of the insured in the event of a disability that stops the person from working. The compensation provided is not the entire salary but about 60% of it, enough to cope with the difficulties of the financial situation arising due to inability to work.
Short Term Disability Insurance Policy
The short term disability insurance policy offers a pay out only after a certain period of time during which the policyholder must be disabled and hence cannot go to work. If during the period the policyholder is able to over come his or her disability and resume work the policy will not pay out at ssa.gov.
The amount gained is a small portion of the salary and has provided for short period of time. Long term disability insurance policy offers composition in the form of a large salary amount. The amount offered is 60% of the salary and it has given for over a period of time.
How much does disability insurance cost per month?
There are two types of disability insurance which is short-term and long-term policy coverage. And it costs 1 to 3% of your annual salary and premium is min $25 per month and it is up to $500 per month. If you are planning to get $50,000 coverage, premium goes to $60 to $125. For exact pricing, you can consult to your agent and life insurance company representatives.