Due to the fact that none of us assume we will become disabled, long-term disability insurance is a type of coverage most of us think we will never need. Still, according to the Social Security Administration, three in 10 workers entering the workforce will become disabled and will be unable to work before they attain their retirement age. Presently, 12 percent of the population is disabled in one way or the other while 50 percent of those workers are still in their working years.
Before you conclude that you don’t need long-term disability insurance, consider what will happen if you are injured and unable to go to work for just three months. Ask yourself if there will be sufficient fund in your account to cover all your living expenses during this period. Furthermore, in a situation where you suffer a major medical condition like cancer and you are unable to work for a whole year, consider what you might face.
As part of their benefits package, a lot of employers provide both long-term and short-term disability coverage. In other words, this is the best alternative for getting affordable long-term disability insurance coverage. It is advisable that you seek out a private insurer if your employer does not offer disability coverage as part of their offer. AARP offers a very good disability insurance calculator to assist you if you are not sure of the amount of coverage you require.
Come what may, the optimal policy is the policy that guarantees income replacement. Replacement of 50 to 60 percent of your income is more usual term available. On the other hand, many factors such as age, health and lifestyle are associated with the cost of disability insurance. The average rate in 2009 for employer or group coverage was around $238 in a year or $5 per week, which is a minute amount you will pay if you are faced with a disturbing injury or illness. When you can no longer work, disability insurance will guarantee that you will receive some income.
Because no one of us ever believes that we can be disabled, we often ignore long-term disability insurance. However, the truth remains that any eventuality that can cause disability can occur any time. For this reason, it is important that you are covered with disability insurance so that when the events that will make you not to be able to work again eventually occur, you will be compensated.