What Is Disability Insurance?

Disability insurance is a type of insurance that provides you with a monthly benefit if you become disabled. Monthly payments are paid for the duration of your disability, or for the specified length of the policy, whichever is sooner.

Disability insurance is a contract between an insurance company and its policyholders. The insurance company agrees to give you a monthly benefit amount in exchange for your monthly payments if you experience a condition that prevents you from working. It is intended to replace a portion of the income you lose as a result of your inability to work. Disability insurance ensures that you can fulfill your financial obligations when you’re unable to work, such as paying bills, covering household expenses, and providing for your family.

How Does Disability Insurance Work?

How disability insurance works will depend on what type of disability insurance you get. There is individual, group, short-term, long-term, and supplemental disability insurance. In general, however, disability insurance works by filing a claim with details about your disability diagnosis and proof that you are unable to work and then you pay premiums for the plan you choose.

You’ll start receiving benefit payments after the waiting period is over. When you return to work, your disability insurance payments usually terminate, but you may be able to extend your coverage with a rider. You can easily cancel your disability insurance if you no longer need it.

Disability Insurance Benefits:

Disability insurance can help you prepare for the unforeseeable and financially protect you and your family. The most common disability insurance benefits include:

  • Providing monthly income in the case of total disability and partial disability
  • Customizable policies for your income needs
  • Protecting your level of training
  • Offerings student loan repayment features

How Much Does Disability Insurance Cost?

Premiums for disability insurance vary based on age, occupation and the features of the policy. Once set, premiums remain level for the duration of the contract. The cost of disability insurance (also known as premiums) for both short-term and long-term coverage can range from 1% to 3% of your annual income. During total disability, your policy premiums are waived. During partial disability, premiums may be reduced.

Who Is Disability Insurance For?

Disability insurance is for those who want income protection for themselves and their family. Individuals with a high level of specified training also purchase disability insurance to protect their occupation and guarantee an income during their working career.

For example: A surgeon who develops a tremor and can no longer perform surgeries, would receive a monthly payout from their disability policy because they can no longer perform duties of their specifically trained occupation, even though they may be able to work another occupation and draw an income.

How To Get Disability Insurance

  1. Choose the type of policy you want to buy.
  2. Determine how much protection you require.
  3. Shop around and compare insurance rates from a variety of companies.
  4. Fill out the paperwork for the application.
  5. Complete an Interview about your lifestyle and medical history.
  6. Take a medical examination.
  7. Wait for a response to your application.
  8. Accept your insurance coverage offer.

There are many disability insurance benefits and the right plan can help protect you and your family. Life Benefits can help you make the right decision. Request a quote for disability insurance today.

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