Why you should Consider Getting a Disability Coverage
An illness or accident can occur at any time leaving one unable to work or earn money, and that marks the beginning of financial strains in the family. It would be hard to pay your mortgage, car insurance, and credit bills once your paycheck is gone. A disability insurance policy comes in whenever the policyholder is unable to work following an illness or an accident and covers a portion of your income until you return to work.
About Disability Coverage
Most employers provide the insurance policy to cater for accidents and illnesses. The plan provided by the employer may not be enough to cover all your financial needs, and the employer may terminate it at the end of your employment contract. Therefore, it would be ideal to get additional individual disability coverage for full protection and help to provide for the families in case you stop working following an illness.
The insurance policies are either long term or short term. The short term insurance policy ensures that a policyholder receives a portion of their income within the first few weeks of an illness or an accident. The payments vary between three months and one year depending on the insurance policy. The long-term disability coverage, on the other hand, provides income to cover essential living expenses like food, mortgage, car payments, and clothing during the extended period of illness or a disabling accident. The insurer provides payments through the employer in both instances while the coverage options may also include the rehab incentives to help the worker transition back to work.
Disability insurance is essential in everyone’s life regardless of the employment status. Every employee is three times likely to become disabled before the age of 65 hence the need to obtain an insurance coverage. Therefore, every person should consider getting disability coverage to avoid future financial surprises should an accident happen.