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About Disability Insurance
Basic Disability Insurance Definitions
Benefit Amount: The amount that will be paid if the insured person becomes disabled.
Benefit Period: The length of time that the benefit amount will be paid if the insured becomes disabled.
Elimination (waiting) Period: The length of time the insured person must wait from the time of initial disability occurs before the benefit amount will be paid.
Definition of Disability: The definition of what disabilities qualify for payment. Examples usually include "own occupation" or "any occupation" definitions.
Disability Insurance and Modern Medicine
As modern medicine advances the need for disability insurance only increases as a add on to life insurance. It used to be that diseases such as cancer would kill a person almost instantly. In those times, the family members were grateful that the sick person had life insurance. However, with the advancement of medical technology, today the diseases that used to kill us now only disable us. Think about a person you know who has cancer. How long has that person been in therapy and been fighting the battle, while racking up medical bills and not able to work. We are very grateful for these medical advancements, however, they still cause a great deal of financial burdens for the family that the person was responsible for providing for.
The Need for Disability Insurance
Disability insurance can provide a great relief for the family of a disabled person. For that family, the expenses start adding up at the worst possible time - when their provider is unable to earn an income. In addition, the stress of having a loved one disabled makes finances the last thing a person wants to think about.
Details of Disability Insurance
When purchasing disability insurance there are a few things you want to watch for. The first is the definition of disability. You want to know how the insurance company views disability and if they will really pay out when you are not able to work. The second is the the benefit period. Many people will tell you that you only need to have disability insurance pay your for 5 years. What if you end up being disabled for life? How long would you want your benefits to continue to be paid. Look for policies that pay you till you are 65. The last concern is the benefit amount. You usually can't get more than 70% of your annual income, but you should always make sure you're getting at least that.
Basic Disability Insurance Definitions
Benefit Amount: The amount that will be paid if the insured person becomes disabled.
Benefit Period: The length of time that the benefit amount will be paid if the insured becomes disabled.
Elimination (waiting) Period: The length of time the insured person must wait from the time of initial disability occurs before the benefit amount will be paid.
Definition of Disability: The definition of what disabilities qualify for payment. Examples usually include "own occupation" or "any occupation" definitions.
Disability Insurance and Modern Medicine
As modern medicine advances the need for disability insurance only increases as a add on to life insurance. It used to be that diseases such as cancer would kill a person almost instantly. In those times, the family members were grateful that the sick person had life insurance. However, with the advancement of medical technology, today the diseases that used to kill us now only disable us. Think about a person you know who has cancer. How long has that person been in therapy and been fighting the battle, while racking up medical bills and not able to work. We are very grateful for these medical advancements, however, they still cause a great deal of financial burdens for the family that the person was responsible for providing for.
The Need for Disability Insurance
Disability insurance can provide a great relief for the family of a disabled person. For that family, the expenses start adding up at the worst possible time - when their provider is unable to earn an income. In addition, the stress of having a loved one disabled makes finances the last thing a person wants to think about.
Details of Disability Insurance
When purchasing disability insurance there are a few things you want to watch for. The first is the definition of disability. You want to know how the insurance company views disability and if they will really pay out when you are not able to work. The second is the the benefit period. Many people will tell you that you only need to have disability insurance pay your for 5 years. What if you end up being disabled for life? How long would you want your benefits to continue to be paid. Look for policies that pay you till you are 65. The last concern is the benefit amount. You usually can't get more than 70% of your annual income, but you should always make sure you're getting at least that.
Disability Insurance
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