If disability insurance is something you do not have, consider how important it is to your financial future.
Most Americans overlook disability insurance more often than not. Their thinking is either that their life insurance covers it, or that they’ll never become disabled. The truth is that no matter what you do for a living, whether it be construction or sitting in a cubicle you are at risk. Know why disability insurance is so important, and which policy is best for you.
Is disability insurance important?
Just over 25 percent of all 20-year-olds alive today will become disabled before they retire from the workforce. This may come as a shock to you and you may be asking yourself when extreme dirt-biking became so popular among ¼ of all 20-year-olds. Well, the truth is that accidents are not the culprit; it’s disease. Diabetes, heart disease, back injuries, and other culprits.
Should you succumb to these common diseases, what will you do?
How do disability policies work?
Short-term policies only cover you for the length of time you chose when you made the policy, and for any extended periods, you may choose to extend it. Long-term policies cover you until your reach retirement.
Long-term disability insurance will usually replace up to two-thirds of your income if you find that you can no longer do your own job. Premiums run to about 1-3 percent of your annual income. This usually depends on the medical exam most people—not going through their employer—have to take. You also can’t take out an insurance policy that replaces more of your income since insurers think there wouldn’t be enough incentive to get better.
When looking for the right disability insurance policy that will best meet your needs, contact Donald Weiss Insurance Services. As an independent insurance agency in Santa Monica, California, we will help you find the perfect policy for your specific situation, all at the right price to fit your budget.