Disability Income Insurance for Individuals

Disability Income Insurance for Individuals
By Alston Balkcom

When it comes to insurance for disabilities for individuals, there are two major kinds you need to know about. Knowing what is good and bad about each major type can make a big difference if you ever need the benefits they offer.

Short term disability income insurance is available immediately should you fall and get hurt or have an illness that disables you. This type of coverage can last from a few days or up to 12 months or more. The benefits of your disability policy will control how long the benefits last. Most employers offer this kind of plan as part of their benefits package. In fact, some states require employers to make some sort of short term disability income insurance, available to their employees.

If your employer short term disability insurance, chances are you're involved in what's called an employer-sponsored policy. Insurance companies pool people together to make the insurance more affordable for everyone. Most group policies pay out 60 percent of your salary. This figure is sometimes offset by other factors. Workers compensation and Social Security may also pay you..

Long term income replacement insurance may start to pay you after your short term coverage stops paying you. Some employers do offer long term disability income insurance, but usually you are on your own to find an agent and buy this kind of additional coverage. Currently, no states are mandating that employers offer any long term disability coverage.

If you're self-employed or if your current employer does not offer any sort of insurance for disabilities for individuals, you will need to do the research and go about purchasing coverage yourself. If you have a family or someone else who depends on you, disability insurance can put your mind at ease.

Insurance (of all kinds) is something we rarely think about until we have an event that makes us do so, but it it is prudent to understand what sort of coverage you have and make sure that you have the coverage you need. Also, you should know the amount of benefits you will be receiving should an injury keep you from working, and whether or not it's enough to keep a roof over your head. Remember that additional coverage above and beyond what your employer's policy will pay you. Although there's an extra cost involved, the money you invest up front may be well worth it when it comes time for you use it.

Even if your employer offers some sort of disability income insurance, you are under no obligation to take it through them. In fact, many employees opt out of their job's plan and investigate and purchase an individual disability insurance plan on their own. You may find that the cost will be more when you go out on your own, there are many advantages to these types of policies.

Employer-sponsored contracts can have payout caps, either monthly or yearly, so if you're a high wage earner you may be quite surprised at the relatively small monthly benefits you actually receive. Also, if you leave your place of employment or are fired, your individual disability insurance policy will stay with you, unlike your place of employment's policy.

Disability Insurance for individuals is something you should really think about before you actually need the benefits. A little planning beforehand can save lots of aggravation later on.

You can find [http://cheaper-disability-insurance.com]prices for disability income insurance on the author's website. He frequently blogs and this post about [http://blog.cheaper-disability-insurance.com/2011/01/long-term-disability-insurance-for-individuals.htm]long term disability insurance for individuals was recently written by the author Alston J. Balkcom.

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