You may have heard about disability insurance but don’t know a lot about it. Having another bill to pay doesn’t sound appealing. So, you may have chosen not to look into it.
Even if you do pay a lot of bills, getting disability insurance offers excellent benefits. If you were to get injured either short-term or long-term, would you want something to fall back on?
The reality is you could get cancer or a broken arm that would make it challenging to continue to work. Disability insurance enables you to get through the tough times financially.
If you want to learn more about disability insurance and wonder if it’s for you, keep reading.
The Difference Between Short Term and Long Term Disability Insurance
You may be curious about what the difference is between long-term and short-term disability insurance. First, check out this brief overview. After reading over it, you may have a preference should you decide to get insurance.
Short-Term
Short-term disability insurance usually covers 40-60% of your income. But it’d be wise to look for a policy that covers 60-70% of your salary.
If you’d like to gamble and think you can recover in a short period, then a short-term policy may work for you.
This type of policy generally lasts anywhere from three months to a year. If you have a lot saved up already, it may make more sense to forgo short-term disability insurance. The reason why is that short-term insurance wouldn’t last you that long, anyway.
If your place of employment offers it for free, however, it’d be foolish not to get it. Weigh your options and keep track of your savings. Knowing how much you have in the bank will help you decide whether a short-term policy is right for you.
Long-Term
Long-term is better than short-term insurance, simply because it continues a lot longer. Disability insurance will last five years or longer, depending on the plan you get. And it can cover 60-70% of your salary. That’s a pretty big chunk of your salary if you think about it!
Like short-term disability insurance, you pay anywhere from 1-3% of your salary per year.
You never know what could happen. Having long-term insurance could really save you from financial difficulty.
If you were a firefighter, for example, who gets burned in a fire, it might take a long time to recover. Having long-term disability insurance will reduce your stress while you get better. The reality is that it could take a lot longer to get back on your feet with an injury like this. So, disability insurance would make up 60-70% of the money you’d be making if you were still working.
The only disadvantage of long-term insurance is that it can take up to six months for you to get your first check. So, you must have enough in the bank to last you at least six months until you get paid.
Even so, having to wait is a lot better than not having enough money to fall back on. So, in the long run, getting a long-term plan will be worth it.
Disability Insurance Is for Everyone
The truth of the matter is disability insurance is essential for everyone. It doesn’t matter if you’re younger or older. It’s wise to get on a short-term or long-term policy.
It’s best to get on a policy when you’re younger before rates get more expensive. But that’s not to say older people shouldn’t get disability insurance. On the contrary, since you could get injured as you age, it’s all the more vital to get it.
Locking in a reasonable long-term disability insurance rate has enormous perks. However, before committing to a plan, do your homework. There are many good disability insurance companies out there, so it’s essential to choose wisely. Guardian disability insurance is one example of a disability insurance company. They may offer a policy that works well for you.
When it comes time to sign the papers for your plan, review everything thoroughly. The insurance company must answer all your questions before you sign on the dotted line. That way, you can feel good knowing you made the right decision.
Conclusion
Even if you have reservations about getting disability insurance, you should think about it this way:
You have car insurance to cover accidents and other car-related issues. You also have health insurance to pay for health-related conditions.
So why wouldn’t you want to get disability insurance to make up for lost income if you couldn’t work?
By having a disability insurance policy, you can put your mind at ease. You’ll have money to keep you afloat and care for your family. So, getting disability insurance is one of the best decisions you will ever make!
