Disability insurance is a type of insurance that a person can take out to cover themselves if they should be injured in some way and not able to return to work, or if their injury diminishes their earnings. Statistics indicate that as many as one in every four workers will be disabled at some point during their career. Whether it is due to an injury on the job, a chronic illness such as cancer, or an automobile accident, disability insurance will reimburse you for some of the lost wages you incur while you are unable to work.
Why would you want to take out disability insurance?
When you are disabled, you are sometimes eligible for social security disability benefits, but not always. Also, even if you are eligible, there is a cap on the maximum monthly amount that you are entitled to, regardless of what you were earning before you became disabled. Private disability insurance, however, covers about 70% of your salary, which can help you from spiralling financially while you are recovering.
Some employers have insurance that will cover a worker, but there are often limitations and caps on the insurance coverage. Once reached, the worker is on their own to pay for their expenses. If an employee is not insured through their employer, then they receive no disability benefits from the employer at all, which is why taking out private insurance is so critical to ensuring that you are protected should you not be able to work.
What are the different types of disability insurance?
There are two different types of disability insurance coverage policies: short-term and long-term. Short-term insurance policies cover an individual for any disability that is six months or less. Long-term insurance can cover a worker for the rest of their life if need be. There are some carriers who also offer “additional protections.” These are options that allow the payments to be adjusted due to cost of living arrangements, a guarantee of renewal, and in some cases, they offer a refund on premium payments if the worker does not use the policy within a specified timeframe.
What is the cost of disability insurance?
The cost of disability insurance varies between companies and is calculated according to the worker’s occupation, their health, their risk behaviors, the monthly benefits that they would receive, and the options that the insured individual takes out. Disability insurance can be expensive, so many individuals opt out of carrying it. For some people, disability insurance premiums can be well into the thousands per year. For those who work in risky industries or earn higher salaries, the cost of being insured can be considerable. In the same respect, those who receive high salaries or are in risky industries can benefit most from taking out the private insurance, because they stand to lose the most and are at the greatest risk.
Is disability right for you?
There are times when you are injured due to someone else’s negligence; in some cases you can make a personal injury suit, but other times you cannot. If you should find yourself in a situation where a personal injury suit either isn’t possible or you can’t prove your case, you could be left with very little recourse to maintain your standard of living. If you have loved ones who are depending on you, that is a very risky thing.
Although taking out disability insurance is an excellent way to protect yourself should you become disabled, even if you carry it, make sure that you know what your legal rights are for a personal injury suit before you fall back on a disability policy. If someone else is responsible for your injuries, there is no reason why you should have to use your disability insurance. If, however, what you recover isn’t enough to pay for your disability, then your disability insurance is a great way to bridge any additional costs that you can’t recover So although it can be expensive, disability insurance is an excellent way to ensure that you, and anyone who is relying on you, are protected should something unexpected happen to you.
Before you take out any disability insurance policy, make sure to have a McAllen personal injury lawyer look over the terms and conditions to ensure that it will cover you should you ever need it. Also, if you are injured, contact a Mcallen personal injury lawyer to help you through the complexities of a personal injury suit.