What is disability insurance?
Disability insurance is protection for your paycheck. The insurance pays you an income benefit in the event you become disabled and are unable to work. Remember, the district can only pay you for sick and personal days that you have earned. If you are unable to work because of an illness or accidental injury and you have expended all of your available earned sick days you will not receive a paycheck.
Disability insurance, sometimes called ‘Health and Accident Coverage’, is a policy designed to pay out a percentage of the holder’s current wages if he or she becomes unable to work. The two main reasons for claiming disability insurance benefits are accidents (whether on the job or not) and debilitating illnesses. Workers covered under disability insurance policies must prove that they cannot perform the majority of their present duties to qualify for total disability status. Insurance experts advise customers to do some comparison shopping before taking out a disability insurance policy. The least expensive policies may also be the most restrictive in terms of eligibility and monthly payouts. Individual insurance companies can set their own terms, so look for specific items like a significant income percentage payout (45% to 60% is typical), a 90 day or less waiting period for benefit eligibility, and fewer restrictions on alternative employment options. Many workers want to feel use
Disability insurance protects your paycheck. When you think about making money, you probably focus on increasing your paycheck via raise negotiations, bonuses and new job opportunities. But while increasing earning potential is important, it’s equally vital to safeguard the income you’re currently making. Wind up on the wrong end of a car windshield and all your raises and bonuses will be worth bubkes. What will suddenly become more important are the measures you put in place when all was well—the ones that make sure you and/or your family are provided for if you can’t do your job, either because of injury or (gulp) death. Fun times, no? Most people looking to protect their income buy life insurance (link to Guide) first. But you’re much more likely to be down for the count for several months than you are to unexpectedly die early. That makes disability insurance your first priority on the protect-your-income front. Disability insurance only works, however, if you’re unable to work bec
Technically disability insurance is a financial services product designed to replace a portion of your income in the event a sickness or accident prevents you from earning an income in your occupation. What it really does is protect families in the event one of the breadwinners can no longer support the family because of an illness or accident. There are many kinds of disability insurance, and no two disability insurance policies are the same, so make sure you purchase your disability insurance policy from an experienced agent, and from a top tier company with experience in this line of business.
