One’s health insurance is designed to compensate for most usual medical bills, whether from an injury or illness. However, it can be of little to no help should you be unable to work. If that occurs and you need to continue to draw an income, good disability insurance is the answer.
What does it do?
Disability insurance is a type of financial protection that is designed to replace a good portion of income should a policyholder be unable to work due to a medical reason. This coverage is often part of voluntary benefit packages in many employer offerings, and many firms will pay some or all of the premiums as a said benefit. Policies normally replace approximately 1/3 to 1/2 of your normal income.
Anyone can gain from carrying disability coverage, but there are some who will find a policy more beneficial than others. Those who completely rely on their income or who are needed as breadwinners to support their dependents are prime candidates for disability insurance. It can also be great for people who work as physical laborers in which even a more minor injury or illness can leave them off work and unable to meet their financial obligations.
How does it operate?
Normally, one will have a doctor’s note to support their contention and then will file a claim on the disability coverage along with a supported estimate as to how long the disability will likely last. Policies vary, but each will have some period of waiting before benefits will activate. There is often an added mandate that you will have to exhaust all paid leave available at your job. The insurance provider will likely require you to also visit a doctor regularly to recertify the disability.
Kinds of policies
There are essentially two main kinds of disability policies: short-term and long-term. The short-term policies will normally cover you from a period of a few weeks to several months. Long-term disability policies are designed to cover individuals who are likely to remain disabled for at least 6 months and until government benefits can kick in.
The main plus of disability insurance is the aforementioned partial replacement of income should you be no longer able to work due to an illness or injury. Costly medical bills along with being away from the job can equal financial problems that often are insurmountable.