All About Disability Insurance
Disability Insurance is a form of insurance that insures/ guarantees the beneficiary’s earned work income in the event of long-term illness, accident or injury that prevents them from performing their job.
Disability Insurance is a reference also known as DI, disability income, disability insurance, income or income protection.
Alarming, the Social Security Administration in 2014, states that one out of four workers over the age of 20 years will become disabled for some period before they retire from their job.
Surprising, only a small percentage of disabilities are the result of an accident. Illnesses cause a majority of disabilities.
Social Security Disability Insurance (S.S.D.I.) offers benefits to individuals that fit into their well defined requirements. Social Security defines disability different from other private programs. Social Security pays a worker only if they are total disability. No benefits are payable to workers for partial disability or short-term disability.
“Disability” under Social Security is determined on your inability to work. Before you can apply for Social Security Disability Insurance you must confirm:
You cannot do work any type of job
The S.S.D.I. decides if you are adjust to other work because of your medical condition.
Your disability has lasted or is expected to last for at least one year or to result in death.
The Social Security Disability Insurance program guidelines assume that families have access to other resources to provide support during periods of short-term disabilities, including workers’ compensation, savings, and investments.
Private Disability Insurance is a financial tool that functions to a replacement income if you were to become disabled. Private Disability Insurance allows you the option to be employed in a “like occupation”. If you were a Dentist they the insurance company assumes you will be a Dentist and not a truck driver.
Disability Insurance usually provides you with a fixed monthly payment but does not cover specific expenses such as medical costs.
Disability Insurance payments continue for the duration of your disability or until the stated time limit on the policy has expired. Before purchasing a Disability Insurance policy you should read the terms and conditions of the policy. You want to make sure the disability insurance policy offers you:
The appropriate time you would desire
Confirm if the policy is,” like occupation”
Is there a wait period for the policy to being
The financial strength of the company issuing the disability insurance policy
Will your payments be taxed free
Will Social Security Disability Insurance replace part of your disability insurance monthly payments.
There are several ways to purchase Disability Insurance; you buy Disability Insurance through a Group Disability Insurance Plan at your work or in the public sector.
Private Disability Insurance will allow you to have more financial resources than relying on Social Security Disability Insurance.
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