The goal of disability insurance is to provide financial support for your loved ones if you become disabled. In most applications, disability coverage only kicks in after a certain amount of income has been lost. This means you shouldn’t count on this coverage if you’re not financially vulnerable enough to require it.
Types of Disability Insurance
Short-Term Disability (STD)
This type of coverage pays you a percentage of your income for a set period of time. The amount you receive is based on your health, so it may not provide sufficient money to recover from a temporary disability.
Long-Term Disability (LTD)
This type of coverage pays you a set amount each month for as long as you’re disabled. It may be preferable to STD coverage because it’s less likely to cancel out due to a change in your health.
This optional coverage protects you if you become disabled and need to go on Medicare. Like STD and LTD coverage, it’s designed to protect your assets if you’re unable to work.
This type of guaranteed protection pays you a small amount each month until you die. It’s often combined with other types of coverage.
How to Buy Disability Insurance
If you’re considering disability insurance, the first step is to figure out how much coverage you and your loved ones need. In most cases, you should buy enough coverage to protect your income for a year or two, but not so much that you’ll be bankrupt if you become disabled.
There are a few ways to estimate your coverage needs. First, you can estimate how much income you’ll need in the event of a disability. Then, you can estimate how much of a financial impact the disability will have on your loved ones.
The Cost of a Claim
The biggest challenge when buying disability insurance is figuring out how much coverage you need and how much it costs. Even if you know what type of coverage you need, you won’t know how much it costs without comparing prices.
Unfortunately, there isn’t a single price for disability insurance. Companies structure their policies differently, so you’ll have to compare costs based on your needs and financial situation. In addition, some states require you to buy coverage from a certain provider, so you’ll have to add that cost.
Fortunately, some services can help you compare prices and ensure you get the coverage possible. Slepian Ellexson, PLLC is a reputable company assisting clients in resolving their social security claims. Contact them if you are looking for Disability Attorney in Scottsdale. Visit their website at Slepian.com for more information.