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Disability Insurance

Disability Insurance (DI) is the foundation for building a sound financial plan. If you do not protect yourself with this policy, illnesses or an accident can wipe out your income. Therefore, it is important that you get a disability policy. Thousands of agents sell disability income protection products.

What is it?

First, this insurance policy will pay you part of your salary if you can not work due to an illness or an accident. The companies that sell these policies will have different rules. Also, the laws will vary in almost every state. It is important that you understand the policy before you make the purchase. Make sure you ask the agent what is in the policy.

Who is it for?

Moreover, the disability income policy is for anyone that provides an income for their family. Most of the policies are purchased by business executives and professional workers. Employers buy these policies as a benefit for their employees. Simply put, the policy is for everybody because your disability may last for the rest of your life.

How does it work?

If you are providing an income for your family, the policy can pay the bills until you can return to work. You must make monthly premiums to the insurance company. For instance, a surgeon can no longer see due to an eye disease. His disability policy will pay him 60% of his annual salary. Some of the policies will allow the employer to help pay a portion of the monthly premiums.

Moreover, there are two types of disability income coverage; There is a short- term disability coverage and a long-term disability coverage. The waiting period for short-term is about two weeks. The waiting period for long-term is about thirty days or up to 720 days.

Finally, the disability income benefits can last a long time if the policy owner selects the right plan. A guaranteed renewable policy will keep your benefits as long as the insurance company receives the payments. The insurance company may offer a residual policy which allows the policyholder to work part-time to make up for lost income. Contact us to find a policy that will meet your needs.






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