If you are worried about what will become of your family and your loved ones should you not be in a position to go to work and provide for them, then disability insurance got you covered.
Disability insurance is the type of cover that ensures an employee is provided for should anything happen to them that renders them unable to work and earn an income. We are here to help you (company/individuals) purchase the best policy cover that will take care of your needs diligently.
Are you the sole provider in your family or home?
Do you have loved ones that depend on you for financial support?
What is Disability Insurance?
When you are the sole provider of the family or have a number of people depending on you financially, you need to secure your means of income should anything happen to your health-wise that will render you unable to earn an income. Disability insurance has the type of policy that allows you to receive almost 60-80% of your monthly income in the event that your health can’t allow you to work.
How does Disability insurance work?
Just like any other insurance policy, disability insurance requires a policyholder to pay a monthly premium to keep the policy active and in effect should it be needed.
The disability insurance is applicable in the event that the worker can’t work due to health reasons. It replaces a certain percentage of your gross monthly income called benefit which varies as per the policy plan.
The duration in which the benefits will be paid is called benefits period and it is subject to the type of plan purchased. This duration takes in effect after the elimination/waiting period which ranges between one-two weeks to around 90 days. The shorter the waiting period the more expensive the policy.
The employer disability insurance doesn’t offer reliable cover because they are short term and are only applicable to your current employee.
The benefits payment from the individual policy is not taxed but the employer’s insurance plan may include taxes.
Why should you consider purchasing Disability Insurance?
Disability insurance protection gives workers and their dependents the ability to live freely without the risk of losing their homes or investments should anything happen that renders them unable to go to work. This makes this type of insurance suitable for anyone in the workforce who wants to secure their life and that of their loved ones or their investments.
What are the advantages of Disability Insurance?
- It gives you the freedom of getting money when you need it but you are unable to work
- The benefits of disability insurance are tax-free
- It covers expenses for your lifestyle
- Gives you time to focus on recovery
- You can use one policy for many jobs
Types of Disability Insurance
This is designed to offer short term disability benefits to employees for free or at a low cost. It is expensive and somewhat the same price as a permanent one.
This is a common plan that is offered by employers as group coverage to its workers but the largest disadvantage with this is that they are not reliable.
Social security disability insurance is provided by the federal government through social security administration.
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Riders
- Cost of living adjustment
- Future increase option
- Automatic benefit enhancement
- Partial or residual disability benefits.
FAQs
How much Disability Insurance Coverage should I have?
When you are calculating the amount of disability coverage you should obtain, you should consider the following factors if you want to maintain your lifestyle without a regular monthly income.
- Risk Assessment.
- Financial Resources.
- Family Responsibilities.
- Current Debt.
- Lifestyle.
Will I be taxed for my disability insurance benefits?
Yes, disability insurance benefits are withdrawn as taxable income and a tax issued, for the benefit payments received. Tax slips are mailed by the end of February every year, for the previous tax year.
What should I consider when choosing disability insurance?
- Waiting period
- Benefit period
- Total disability
- Any occupation
What is the Elimination Period?
The elimination period, which is sometimes called the qualifying period is the length of time between the onset of a disability and when you become eligible to receive benefits.
What are the total disability tests?
Disability tests are used to determine whether you can work at your “own occupation” or “any occupation.” Most people on disability insurance benefits have a reasonable level of functional ability. They only fail to meet the physical demands required for regular employment.
Is it possible to be denied my disability benefits when I am genuinely totally disabled?
Disability insurance is not granted to all those who get injured or sick. Certain conditions have to be met including the following:
- Recent employees that have not completed their probation period.
- Employees that are still undergoing the initial enrollment period.
- You may be excluded by a pre-existing condition exclusion.
- Most policies do not cover self-inflicted harm.
What happens should my insurance benefits be denied?
- You will receive an official letter with the reason behind the denial from the insurer.
- You will be presented with the right to submit additional medical evidence or appeal your case to a higher office.
- Re-appealing is futile most of the time unless it is accompanied by stronger medical evidence.
- With the first denial letter, you as the policyholder can make a legal claim if you are sure of your entitlement to the claim.
- Always follow your doctor’s advice on your ability to go back to work.
- If the insurance insists on working when the doctor doesn’t agree, you will need a dispute lawyer.