Mar
4

Replacing Income When Disabled

Filed Under Uncategorized 

Disability income protection is the term used for insurance which will be able to replace your income in the event where you might find yourself unable to work as a result of injury or possible illness. It has also further been estimated that approximately 25% of Americans could not keep up with payments only one week after being put off work. In some cases, these people would be living from one paycheck to the next with little to absolutely no savings. Whether or not this might apply to you, disability income protection can always be beneficial to you, as you will surely want to make sure that you will be able to protect your family from any negative consequences that might arise due to your recent disability. This payment protection insurance will be able to ensure that your family is taken care of until you can return to work.

As most people understand, mortgage, medical bills and everyday household expenses need to be paid for on a regular basis whether or not you might be working, as further reports have also estimated that 33% of working women are sometimes liable to find themselves out of work for a period of ninety days or longer due to illness or disability. For men, this ratio tends to decrease to a lower 25%, which still suggests 1 in 4, and not very good odds. This is why there are many different types of disability income insurance protection; and you will therefore also need to determine which type of offer will be best for your particular situation.

For example, the workman’s compensation is a form of disability insurance protection which will only be able to apply if you are injured on the job. However, most long-term disabilities are not always work-related. Therefore, if you get injured at work, in some cases, you might only receive 2/3 of your income. Bearing these points in mind, you will need to stop and consider whether or not the particular offer will be able to cover your normal bills. In some cases, social security can also provide a reliable form of this insurance, but in most cases it will not always be equivalent to your normal income. Also, many claims under this program are often denied, especially first time requests.

Nonetheless, many employers tend to offer this kind of protection through the use of payroll deductions and might even, in some cases, offer short term disability benefits, long term benefits or both. Short term benefits, in most cases, can last for approximately three months and cover a large portion of your income. Long term benefits, on the other hand, will only cover 40-60% of income yet last for a much longer period of time. This type of coverage is usually fairly easy to qualify for and some employers will choose to offer baseline coverage with the option of increasing that coverage according to your own everyday costs.

Individual income protection insurance is also sometimes available even if your employer might not offer it. This type of coverage is also able to cover approximately 40-65% of your income. Therefore, if you pay with after-tax dollars, your benefits will not be taxed and will also be very helpful to you as every dime coming in will surely be quite important when faced with a disability.

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