What You Need to Know About Disability Insurance

What You Need to Know About Disability Insurance

Injured worker laying on the floor

Investing in better health is a wiser decision than buying expensive cars, a fancy home, or earning a 6- or 7-digit annual paycheck. After all, we would rely on our physical and mental abilities, so we can perform well in our respective jobs. However, anything can happen in our lifetime — including unfortunate accidents or unexpected illnesses.

Getting involved in an accident or suddenly having an illness can affect your life forever. It may also result for you to become incapable of working effectively, unlike before. In most cases, an incapacitated person may be let go by the company he or she is working with. In such cases, you may need to consult disability insurance lawyers in Los Angeles.

How disability insurance works

A report from the Social Security Administration reveals that around one in four US adults will experience some kind of disability that can affect their work life. As a result, it can affect their overall work performance and even end up getting laid off. Obviously, no work means no pay and no financial means to provide for your family.

This is how disability insurance can help you in lessening your financial woes. Disability insurance can help a lot with your financial needs. At the same time, it can help you financially supporting your family. Basically, disability insurance replaces your regular income in case you become physically or mentally incapacitated to work.

Disability insurance is somewhat similar to life insurance. The latter will provide financial assistance to your immediate dependents in case you die. On the other hand, the former applies once an injury occurs that causes your incapacitation to work. This is one reason why it is a good idea to get one.

Why you should avail a disability insurance

As mentioned, you may never know what lies ahead. One day you are okay, the next day you get involved in an accident and makes you disabled for good. This is why having disability insurance can help a lot in case you become incapacitated for some unexpected reason.

There are two types of disability insurance: short-term and long-term. In short-term disability insurance, it usually replaces up to 70 percent of your monthly salary. Payouts also last a couple of month up to a year, but it depends on the kind of policy you have.

On the other hand, experts recommend getting long-term disability insurance because it is more cost-effective. At the same time, it can offer the most comprehensive coverage by getting long-term disability insurance. Also, payouts for long-term disability insurance policies are bigger and are tax-free, which can even last until your retirement years.

How to get a disability insurance policy

Businessman suffering from injury

There are some ways to avail disability insurance. For one, some companies offer this type of insurance as part of employee benefits. You can also avail it voluntarily in case the company does not offer one. In addition, you can get insurance through an agent. Regardless of your choice, getting disability insurance is one of the best investments you can make for your future.

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