Should an Individual Buy Disability Insurance?
If you already receive insurance benefits through your employer, individual disability insurance may seem like a waste of your hard-earned money. However, for those who work in high risk occupations, this supplemental insurance policy could be the most important purchase you ever make. Unfortunately, though, many Americans do not understand their current insurance policies and have no idea how to go about buying additional coverage.
Luckily, the next few paragraphs will help place your mind at ease! Here, you will learn how and why individual disability insurance may help you and your family, what to look for in a policy, and how much you should expect to pay for coverage. Additionally, you will learn who should not spend the extra money required for this type of coverage.
The Ins and Outs of Individual Disability Insurance
Before making any final decision, it is important to familiarize yourself with the ins and outs of individual disability insurance. In short, individual disability insurance picks up where your current disability coverage leaves off. Generally, your employer's plan will replace 70% or less of your monthly income. For many households, however, this reduced percentage is not enough to pay the bills, and they risk losing their home and/or car, as well as destroying their credit rating. This supplemental coverage may replace the remaining percentage of your usual income, thus keeping you living in the manner to which you are accustomed.
When looking for a policy, read the fine print carefully. Make certain that this policy will provide you with the appropriate amount of financial assitance in case of injury or illness, and check to see if benefits ever run out. Also, remember that you may never actually become disabled, so don't pick a policy that had hard-to-meet premiums.
Remember that, no matter how good individual disability insurance may sound, it is not for everybody! If your insurance policy already provides all the coverage you need, or if your occupation has a low risk of disability, purchasing supplemental insurance may be financially irresponsible. You might want to consider starting a savings account or mutual fund instead.
Whether or not you decide to purchase additional coverage, you should be certain to make yourself comfortable with the policies of your current plan. Education is the best way to avoid surprises if you ever do become disabled. Good luck!
Disability Insurance Articles
- Disability and the Problem of "Denied" in Social Security Claims
- Income Replacement for Disability
- UNUM Provident Insurance
- Does Your Disability Require Long Term Benefits?
- Disability Can Be Long Term: Help from Lawyers
- UNUM Provident: Income Protection
- Disability that Lasts Long Term: Protect with Insurance
- Are You Suffering from Fibromyalgia?
- Appeals are Necessary When Disability Benefits are Denied