Disability Insurance

Understanding Disability Insurance

Disability insurance helps when you become unable to work due to a disability. Take into consideration how long could you pay your rent or mortgage, pay utility bills, or buy groceries if you didn’t have any income. For most people, that situation would quickly start to cause stress. This is where disability insurance enters into the picture. You can consider it like an insurance plan for your salary. It means that in case you can’t work because of an injury or illness, you will temporarily get an income. The disability can be caused by injuries or accidents on the job, including other debilitating illnesses like a heart attack or cancer.

Disability covers approximately 70% of your salary, no matter the age when the disability arises. You might have coverage through your employer. But if you do not, you will have to purchase a policy.

There is short-term and long-term disability. Short-term is generally for illnesses that last up to six months. Long-term covers a substantial part of your salary for the rest of your life if need be.
An insurance agency might also provide additional disability insurance options like guaranteed renewal, and cost-of-living-adjustments.