Disability Insurance Overview
Disability insurance offers income protection to those unable to work due to qualifying injuries or illnesses. This coverage provides monthly benefits to manage financial obligations, including debt and living expenses, for a specified duration or until retirement age.
Coverage And Key Features
Disability insurance replaces a portion of income in case of serious illness or injury. Individual policies generally offer 60-80% of current earnings, with tax-free benefits. Employer-sponsored plans may fall short, whereas personal policies remain effective even when changing jobs.
The cost of disability insurance depends on various factors such as:
Remember, it’s important to balance your desired coverage with your budget.
Types Of Disability Insurance
There are two main types of disability insurance: short-term disability insurance and long-term disability insurance. These types offer different coverage durations and benefits based on your needs. Here’s an overview of each:
Short-Term Disability Insurance
Long-Term Disability Insurance
Own Occupation vs. Any Occupation
Own Occupation coverage means you’re eligible for benefits if you can’t perform the duties of your specific occupation, even if you could work in a different job.
If a surgeon becomes unable to perform surgeries due to disability but could still work in a non-surgical medical role, they’d receive benefits under this coverage.
Any Occupation coverage requires you to be unable to perform the duties of any job suitable for your skills and experience to receive benefits.
If that same surgeon could work as a consultant or medical educator despite being unable to perform surgeries, they might not receive benefits under this coverage.
Own Occupation offers broader protection, focusing on your specific job tasks, while Any Occupation requires a disability preventing you from working in any job. Understanding which definition your policy uses is crucial in determining benefit eligibility.
Limitations Of Disability Insurance
Disability insurance provides income protection for individuals unable to work due to injury or illness. However, it has certain limitations:
Understanding these limitations is crucial when choosing a disability insurance policy. Contact us today for more information.
Disability Income Quote Request
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