Getting disability insurance is a smart move.
It provides financial security for you and your loved ones in case of an injury or illness that prevents you from working. You can use the disability insurance benefits you receive from your policy however you want—to pay monthly bills like rent, utilities, and food, to cover out-of-pocket medical expenses, or even to cover childcare and groceries.
When you have disability insurance, you can rest assured that your family will be protected in case of a long-term disability. You may also hear disability insurance referred to as disability income or income protection insurance.
How Does It Work?
The purpose of disability insurance is to replace a portion of your lost income if you cannot work. Paying your bills, covering your household’s expenses, and supporting your family while you cannot work are all possible with disability insurance.
Disability Insurance Policies cover:
- How the policy defines disability – Some policies will pay out a monthly benefit if an injury prevents you from working at your regular job but allow you to do other work that will still reduce your income. It’s important to know that other policies won’t pay out benefits, no matter how low your salary is.
- Benefits – Benefits are typically calculated as a percentage of your salary. Disability insurance typically pays 60% to 80% of your earnings before your disability.
- Premium – Like any other insurance: You must pay this monthly to keep your policy active.
- How long will it last – The benefit period can last for a certain number of months, years, or even until a certain age.
What Does It Cover?
Disability insurance covers injuries and illnesses that make it impossible for you to perform your job duties. Isn’t it easy to see how this works? There are still a lot of misconceptions about what constitutes a disability and what does not. What images come to mind, for instance, when you hear the word “disability”? Freak accidents and sporadic congenital disabilities are often to blame. All of those things that we think are out of the question.
However, this isn’t the case at all.
25% of today’s 20-year-olds will be unable to work for at least three months before retirement. Nothing is surprising about this fact when considering the most common causes of long-term disability.
- Back pain
- Heart disease
You read it right. 90% of long-term disability claims are based on medical illnesses rather than physical injuries.
Not all injuries are disabling, but this doesn’t mean they aren’t severe enough to require medical attention. However, it implies that the range of disabilities that can prevent you from earning an income is much broader than most people realize.
Who Needs Disability Insurance?
Afraid to take out disability insurance because of the uncertainty of whether or not you’ll need it?
If you’re young, healthy, and want to protect your financial future, disability insurance is a good investment. There is a risk of financial ruin without disability insurance in the event of a severe injury or illness. Even a short-term disability can deplete your savings, put you behind on your bills, and leave you with a mountain of debt.
No one knows what could happen tomorrow. Disability insurance is for everyday people like you and me. Here at Heroes Sick Pay, we aim to protect our heroes who put other people first before themselves.