Disability insurance is vital because your most valuable asset isn’t your house or your car, but it’s you, as well as your ability to bring in income. Having this type of insurance means that you don’t miss out on your entire pay if a debilitating injury were to happen. Anyone who relies on a paycheck should have this type of coverage. Here are the ins and outs of disability insurance.
Why You Should Have Disability Insurance
The Social Security Administration reports that more than one in four 20-year-olds will experience an injury that will put them out of work for 90 days or more before they reach retirement age. A misconception is that an unfortunate event will never happen, especially when you’re young, but the one thing that’s predictable about life is that it can indeed be unpredictable. Every working adult should ponder on what they would do if they couldn’t work.
What Types of Disability Insurance Policies Exist?
The two most common types of disability insurance are short-term insurance versus long-term insurance. Short-term typically pays out 60-70% of your base pay salary while long-term usually pays out about 40-60%. With short-term disability insurance, it depends on the policy, but the payouts generally happen for a few months to a year. The long-term version of this policy typically allows for the plan to end when the disability does. The waiting period for short-term disability usually is no longer than two weeks, but it can take up to 90 days with long-term disability insurance.
Many policies vary depending on the extent to which the claimant is disabled. Some coverage only occurs when a person is unable to work any job, while other times, coverage happens when you can’t work on the job in which you have qualifications.
Essential Questions to Ask Yourself About Long-Term Disability Insurance
- What percentage of your income would you need to maintain your current lifestyle if you were to become disabled?
- How long do you want to wait before you receive the payouts?
- How long would you need the benefits to last?
- How would you define or determine the word “disability?
Here we offer employers comprehensive insurance solutions. If you’re interested in enhancing your insurance solutions today, then give us a call. Your employees should feel comforted knowing that they’re still entitled to pay even when an injury occurs.
Partner with Malden Solutions Today
Malden Solutions has a wealth of expertise in providing employer insurance solutions, HR solutions, and individual insurance solutions to businesses both big and small. Our team of seasoned professionals can help you navigate the rapidly-changing world of insurance with ease. We partner with businesses and individuals throughout the country to provide our dedicated services for employee benefits but also work within our surrounding communities in Maryland, Northern Virginia, and Washington, D.C. Contact us today to learn more about how we can provide effective, dynamic solutions for your business. Stay connected with us on Twitter,Facebook, and Linkedin.