Most of us are familiar with the routine types of insurance. We have home, health, and car insurance, and we have also been dealing with navigating those purchases for numerous years. Also, there are other insurance types that many people are less familiar with such as disability insurance. Many of these insurance types come up at work since they come with benefit packages. However, younger employees often overlook them. Continue reading to learn how disability insurance is essential.
Do You Know What Disability Insurance Is?
Even though most of us know what life insurance is, do you know what disability insurance is? It’s similar to life insurance but it pays out if you are disabled enough that you can’t work and protects you so you can continue to pay your bills and cover expenses. In addition, disability insurance replaces a portion of your paycheck so it can be part of the solution. Overall, there are various policy types and it might be worthwhile to discuss your specific needs with an insurance broker.
Common Types of Disability Insurance
The prevalent types of disability insurance include long-term, short-term, and social security. Short-term disability insurance covers a disability that keeps you from working now but will recover over time. In these cases, you will be able to return to work soon. So, short-term insurance covers up to 8 months and no more than a year. In contrast, long-term disability insurance covers an extended period of disability, lasting up to retirement age, depending on your condition. Lastly, Social Security disability insurance is part of your Social Security benefits, but qualifying may be complex.
How Does Disability Insurance Work?
Your policy will state what disabilities it covers, from long-term illness to full disability. Additionally, these definitions differ between carriers. If you meet the definition, you must wait before benefits kick in. Soon after that, a percentage of your regular paycheck amount will come to you for the duration of the coverage. Overall, this will be determined by your policy and differs a lot between carriers and policies.
Do You Need Disability Insurance?
Yes, if you need your paycheck to cover your living expenses. Disability insurance is ideal if you fail to make ends meet if your paychecks just stopped. No one knows what the future will bring, but disability insurance helps you prepare for it.
Find the Right Health Insurance Solutions for Your Needs
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.