What are the advantages of disability insurance?

Disability insurance allows you and your family to have peace of mind knowing that even if you are injured or become ill your income will be protected. If you suffer from a long-term disability, not only will you have your normal day-to-day living expenses, but are likely to have additional medical expenses to contend with as you manage your health. With disability insurance, you will have the financial security to maintain your standard of living until you can get back to work, and saving you stress and an ever increasing debt.

Who needs disability insurance?

Disability insurance is a necessity for anyone who relies on their salary to pay their day-to-day expenses. Single or married, young or old, everyone should take the time to insure their most valuable asset – their continuing health and ability to earn an income – against injury or illness. In many cases single people may not consider themselves candidates for disability insurance; however single people often need more support if they become disabled because they do not have a spouse’s finances to assist them during their recovery. In addition, many couples could not maintain their current standard of living on one salary, and should also consider disability insurance in order to protect their assets and lifestyle.

How do I calculate how much disability insurance I need?

To decide how much disability insurance you would need, try and calculate how much of your income goes into your monthly spending and whether you think your spending would increase or decrease due to disability. Would you save a significant amount of money on work expenses? Would your medical costs increase? Do you have upcoming expenses that will need to be maintained such as a child’s college tuition on the horizon? Once you have a rough number in mind it is a good idea to speak with a licensed agent who can help you work out the details.

How long will my benefits be paid?

With an individual disability insurance policy you are able to choose the maximum amount of time you will be covered, ranging anywhere from several months up until you turn 65. Policy premiums will increase with longer coverage periods.

What will I need to file a claim?

To file a claim with your insurance company you will need written documentation of your disability. In most cases, you will need to show medical records detailing your condition, and may have to have an examination to confirm your disability. Your benefits will begin as soon as the predetermined waiting period has passed, and often you will not have to pay premiums during your period of disability.