The 411 on Disability Insurance
Disability Insurance (DI) can be a part of your overall financial plan. However, should you opt to not protect yourself with this kind of protection, many kinds of illnesses or accidents can potentially strike and have a major deleterious effect on your income and overall well being. Therefore, it is vital to seriously consider obtaining good disability insurance coverage. Most agents offer disability income protection coverage. There are many derivations of this protection, including major organ transplant coverage that is a type of protection that is designed to safeguard one’s income if he or she becomes critically ill or injured and, as a result, is unable to carry out work responsibilities for a length of time. It has protection for bodily injuries, including such vital components as eyesight, hearing, limbs and hands, and also for mental incapacitation.
Who Needs It
Pretty much all can benefit from this kind of policy coverage. This is substantiated by the fact that anyone can be injured or fall sick at any time, which leads to the inability to meet their employment responsibilities. This type of protection is generally provided to those who run their own businesses, are self-employed, normal employees and even those who temporarily out of work. It is far-reaching and a potential benefit to all who purchase it.
How it Functions
Levels of compensation vary in conjunction with the levels of coverage. Each policy is renewable on a yearly basis. Should one become ill or injured and, as a result, can no longer perform his or her work duties, one can then file a claim for financial payments from the insurance company. These payouts continue until you are once again able to resume work duties as normal.
Kinds of coverage
There are generally two types of disability insurance policies: Short-Term Disability (STD) and Long-Term Disability (LTD). STD policies usually have a 14-day waiting period with a maximum period of benefits being provided no longer than two years. LTD policies will usually have a waiting period of a few weeks and up to several months. The maximum benefit period for this coverage ranges from three or so years up to the time remaining in your life.