If you incur an injury or illness that prevents you from working, you’ll need financial protection. Disability insurance is a perfect fit for this situation. Here’s why this coverage is beneficial to you:
Disability insurance is easy to obtain. Often, you can purchase this policy through your employer, and in some instances, your company might provide it to you as part of your benefits package. This makes it an easier option compared to Social Security disability benefits, where you’ll go through a much more rigorous application process.
It provides financial benefits when you need them the most. When you have to miss work due to illness or injury, some employers allow you to use your accrued vacation and personal time. However, what happens when you exhausted these benefits?
This is where disability insurance kicks in. It provides you with up to 60 percent of your income, with a monthly cap of $3,000 for the maximum benefit. While it won’t replace your income entirely, it’s a great option to receive some of the money you need when you’re unable to work.
It gives you the time to recover. Instead of having to fret over how you’re going to make money, disability insurance allows you to focus more on recovery. This gives you peace of mind in a stressful situation.
The policy can be transferrable. If you bought your policy through an independent agent or provider, then you can take the coverage with you when you switch jobs.
You can customize these policies to fit your needs. Disability insurance comes in short-term and long-term policies. Short-term policies tend to have a benefit period ranging from one to three years whereas a long-term policy can go up to five years or until you reach 67, whichever comes sooner.
What’s more, with long-term policies you can add riders such as the cost of living adjustment. How this works is if the cost of living increases, your monthly benefits increase to offset the additional expense.
All told, you can customize these policies more to your needs, making it a great financial option to consider. Learn more about disability insurance by reaching out to an independent Cole Harrison agent today.