Author: Jonas Gihone Akula
It is wise to get disability insurance California from one of the best insurance agencies. The ability to work and earn money for you and your family is one of the greatest gifts that you have. Losing work even for a temporary period is not a pleasant thing.
Why Have Disability Insurance?
As per an estimate by Social Security Administration, one in every four 20 years old experiences this disability. Sometimes, they might have this disability for almost 90 days or sometimes a long time before they turn 67 years. Sometimes, disability insurance is also known as disability income insurance. The income that you receive will help you either permanently or temporarily, depending on your situation.
Do I Need Disability Insurance?
Do you depend on the paycheck you receive to take care of your expenses? It would be best if you had disability insurance. Remember, an unforeseen event can cause you so much trouble. Hence, it is best to take your time to understand the various disability insurances that are available.
Here’s a list of some of them for your reference:
Short-Term Disability Insurance
This insurance is also known as STD. STD is designed in such a way that it can cover 60 to 80 percent of your income for the short term. Typically, that is for three to six months or till the time you get back to work.
Long-Term Disability Insurance
Long-term disability insurance, which is also known as LTD, is quite popular. It helps take care of a person for a more extended period when a person has a disability. In some cases, this policy may be effective till retirement and in other circumstances beyond it. An individual might get 50 to 67 percent of income through this insurance. When it comes to group insurance, individuals might get somewhere around 40 to 60 percent of their income.
Social Security Disability Insurance
SSDI or Social Security Disability Insurance integrates to your social security benefits. But if one has to qualify for it, it is going to be a lot tougher. Most of the applicants who apply for SSDI face rejection.
And, the benefits they might get are also lower than the private disability insurance policies. Therefore, as per experts, it is crucial for you to not base on insurance alone for your income.
Things to Check When Picking a Disability Insurance
Here are some things you might want to check before taking disability insurance:
1. Definition of Disability – What construes as ”disability,” as per the policy?
2. Amount of Premium
3. Waiting period of the policy
4. Learn about the benefit amount
5. Check on the benefit period or the time you will get the benefit
6. Options and features as outlined in the policy
7. Insurance Company that is offering this product and their background
These are the key elements you must check before signing up for the insurance. It would be best to do a thorough investigation of disability insurance California to get the best deal.
