What is Disability Insurance?
Disability Insurance is provided both independently and as a part of workplace benefits insurance by employers. This insurance helps employees take protection against the possibility of being hurt or permanently disabled because of their work. Disability policies help to provide hurt individuals with their regular, pre-injury income for as long as needed.
Who is It For?
Disability policies are very important for anyone who works as a part of the workforce. It may seem as though disabilities will never be in your life, but one can never be too careful. Statistics show that ONE in FOUR people in the United States workforce will have to deal with a disability at some point in their life. This insurance policy can provide the protection you need for yourself and your family.
How Does It Work?
The disability policy remains dormant until something unfortunate happens. If you have the policy as part of your workplace benefits insurance, there is nothing you have to do. If you do not get those benefits, you may want to purchase this insurance independently.
As long as someone keeps paying the monthly premiums, they will be protected up to the point they are disabled. When disability occurs, the policy will investigate and determine that the individual should be paid their pre-injury wage until they reach a retirement age.
Different Types of Coverage
There are different degrees to the disability policy. Depending on how much coverage you purchase, the future payments made can increase or decrease. The very basic disability policies will cover 50% to 75% of your past earnings, while more extensive policies may pay 100% or 125-150% of what you earned before your disability.
Disability protection is important for anyone who works a job that requires physical labor. If a person is working construction, in the mines, or plays professional sports, they will want to get comprehensive disability protection. These people are at the greatest risk of suffering a disabling injury.
Even someone who works a desk job runs the risk of suffering a serious, long term disability. With this insurance, their future earnings are protected.