Disability Insurance
February 28th, 2012No comments »
| Disability Insurance When you select disability coverage, make sure you understand how the policy defines disability. This is important because the cost and type of coverage will be affected. Some policy plans pay only you are unable to work, whether at your current job or any other position. Other policies might pay if you cannot work at your regular profession. Another coverage might offer payment based on the amount of time you could devote to you job. If, for instance, you suffer a heart attack and can only work part time, you could collect from some policies, but from others you couldn’t. Talk with us to find out which type of disability coverage best suits your needs. There are number of different types of disability insurance policies. Most of the variation is due to the amount of coverage provided. One type of disability insurance is described as “own occupation”. Quite simply this means that if you are unable to perform within your own occupation then you get complete disability. Even if you take up another position that makes as much or more money, you still receive full benefits. This type of disability policy is very expensive. The income replacement policy only replaces the income that is lost. For instance, a surgeon who can no longer operate yet can teach, will have the difference between his teaching salary and surgical income replaced. And there are step rated policies. This type of policy increases in cost as you age and the chances of disability increase. Disability insurance is a safety net that protects you and your income should you become disabled. This sort of policy generally covers people while they are in their working years. Determining how much insurance you need is relatively straightforward. Generally speaking, you’ll need to cover all of your living expenses minus those expenses that were incurred as a result of your working. In other words, a certain percentage of your income, generally between 40 and 20 percent, is directly or indirectly related to the process of getting to and from work and doing your job. Since you are disabled and unable to work, you do not need to replace that income devoted to the job. If you’re uncertain as to the exact amount you need, consult an expert. This information is general in nature and should not substitute for the advice of an expert in the field. Contact us at Assurance Insurance Agency or give us a call today at 1-800-897-1395.
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