What is disability insurance?
“The Social Security and Supplemental Security disability programs are the largest of several federal programs that provide assistance to people with disabilities. While these two programs are different in many ways, both are administered by the Social Security Administration and only by individuals with disabilities, and meet medical criteria may be eligible for benefits under either program.”
– Social Security website, June 2006
The Social Security office will want to check your medical history to make sure you qualify for disability benefits. The Social Security office is one way to get disability benefits, but in most cases these benefits won’t be substantial enough for families.
Disability insurance can be taken out with a large number of insurance companies. In the event that you are incapacitated for work, this insurance serves as financial protection. You receive a percentage of your gross income from your disability insurance, income with which you can guarantee your own financial security.
You do not have to go through Social Security to take out disability insurance and receive the benefits of that insurance. The Social Security disability program is not related to any disability insurance you purchase.
“Individual disability insurance is really a basic concept. It is an insurance product designed to replace 45-60% of your gross income tax-free should illness or disease prevent you from earning income in your occupation. Any disability insurance from any insurance company is very otherwise, this is not a product to simply shop for the most competitive rate. Buying the cheapest disability insurance policy on the market is throwing money away. The odds of getting a monthly benefit under a cheap contract can be significantly lower than receiving benefits of a quality contract.”
– About the Disability Insurance website, June 2006
Types of disability insurance
Most people are familiar with two types of disability insurance: short-term disability and long-term disability. Short-term disability insurance is part of an employment package with many different employers and usually provides an income in the early stages of disability. Short-term disability insurance generally provides coverage for a period of several weeks and does not last longer than two years.
However, long-term disability can last for several years. These types of policies can be included as part of employment, in a benefits package, but many buy these disability insurance policies separately.
However, when it comes to disability insurance, there are even more policies to learn about. One type of disability insurance is disability insurance. The definition of this policy reads:
“The inability to perform the material and substantial duties of your regular occupation, the insurance company will consider your occupation as the occupation you are in at the time you become incapacitated, they will pay the claim even if you are in another capacity .”
Another form of disability insurance is the income replacement insurance. This is a very popular form of disability insurance and most insurance agents are familiar with this policy. The language of this type of disability insurance is:
“Because of illness or injury, you are unable to perform the material and substantial duties of your profession and have no other pursuits.”
Earnings occupational coverage is common in employee benefits packages and is another popular form of disability insurance. The language is worded very carefully here:
“Because of illness or injury, you are unable to perform the material and substantial duties of your occupation, or any occupation for which you are considered reasonably qualified by education, training or experience.”
Disability insurance
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