Life is unpredictable, if you fail to plan, you plan to fail. Accidents, illnesses, and disabilities can strike at any time, leaving you unable to work, support yourself and your family. A staggering 25% of today’s 20-year-olds can expect to be out of work for at least one year because of a disabling condition before they reach the normal retirement age. Could you go one year without making a penny? Disability Insurance or “DI” provides financial protection to individuals who become disabled and are unable to work. In this article, we will explore how it works, and its benefits. With this coverage, you can rest assured that your income and family are protected, even in the event of the unexpected.
What is long-term disability insurance?
If you are unable to work due to a disability that lasts longer than 90 days, long term DI may pay you a sizable portion (60-80%) of your income. DI coverage is a form of income replacement which provides financial protection if you become unable to work due to illness or injury. With this insurance, you will be able to receive income until you are ready and able to go back to work. The insurance offers a safety net that provides income when you are unable to work.
Why do you need long-term disability insurance?
DI coverage is a must-have for anyone who wants to protect his or her income, family, and financial future. Without this coverage, a person’s income can be at risk if they become disabled and unable to work. One of the primary benefits of long-term disability insurance is that it provides a source of income if you become unable to work due to a disability. This income can be used to cover living expenses, supporting your family, medical bills, and other costs associated with your disability. Without this coverage, you may be forced to rely on savings or borrow money to cover your expenses.
What does long-term disability insurance cover?
- Cancer
- Heart disease
- Back pain
- Joint problems
- Mental Illnesses such as anxiety or depression
Long-term disability insurance and breadwinners
DI coverage is especially important to the breadwinners, who are responsible for supporting his or her family financially. If a breadwinner becomes disabled and unable to work, the family’s financial future can be at risk. Long-term DI coverage will help breadwinners give their families financial protection and reduce the risk of going into debt or worse, bankruptcy.
The preferred type of coverage
True own-occupation Disability insurance is the most comprehensive and robust type of coverage you can buy. This policy selection means you can receive your full benefit payment even while holding another kind of job. For example,If a surgeon loses use of a finger, and cannot perform surgery, he or she could take a teaching or consulting job and still receive replacement income for the entire benefit period.
Common mistakes made
When applying for long-term DI there are a few common mistakes you should avoid. For example:
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Not disclosing pre-existing conditions: Failing to disclose pre-existing conditions can result in a claim denial.
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Overestimating your income: Overestimating your income can result in higher premiums and lower benefits.
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Not reading the policy carefully: Not reading the policy carefully can result in unexpected exclusions and limitations.
Is it worth it?
In conclusion, long term DI is a wise investment for anyone looking to secure their financial future. The benefits of long term disability insurance are many, and it’s essential to consider them when planning your financial future. Whether you’re a high earner, breadwinner, or just want to protect your income, long term DI can provide the financial protection you need to maintain your standard of living and focus on your recovery without worrying about finances. Let us help you find the proper insurance policy. Give us a call at 248-362-1313 or fill in the form below and we can start assisting you.
