Disability Insurance

Disability Insurance (DI) pay your expenses when you are sick or disable. DI insures your net income. This kind of insurance policy is sold by an agent or by an insurance company. All insurance agents must have a state license to sell DI insurance. State insurance regulators oversee DI companies and agents. Insurers (i.e. insurance companies) issue different types of DI policies to individuals and employers. Here is a brief summary about DI insurance.

Disability Policy
First, the policy is a contract between the insurer and the insured (i.e. client). The insurer agree to pay the insured if the insured meet the disability definition(s) in the contract. Insurance companies define disability in different ways. One company may say you are disable if you cannot not perform your job. On the other hand, you might be disable if you are confined to a hospitable bed. It is very important that you read and understand your policy.

Workplace Disability Benefits
Next, the workplace disability benefit is sometimes called Group Disability Insurance. This policy is “owned” by the employer. The benefits are based on the workers gross income. When the employees make payments, the benefits are treated like an individual policy. Your coverage under group disability will usually last for less than two years. The benefits last for about six months. It will take about a week to receive benefits if you become disable.

Who Needs DI Insurance?
We all need disability policy. Simply put, an illness or an accident can occur at any time. For example, one day you fall off a ladder while trying to replace a light bulb. You miss work for six months. If you have disability policy, the policy can help you pay your bills until you go back to work.

How Does the Policy Work?
You fill out an application. The benefits may start anywhere from 30 days after the disability up to perhaps a year. The benefit periods are specified in the contract. Some policies include riders that make the policy better. You can get a disability policy that will cover you for the rest of your life.

Finally, you can also buy a key employee disability policy or a key partner disability policy. DI policies benefit us because they can replace our lost income. They can prevent us from losing our home. They can pay for medications and doctor visits. More importantly, these policies can help provide food and clothing when an injury or accident occurs in our family.