If you thought disability insurance is not important, think again. In Covid times, the need for disability income insurance has been felt more than ever before. In the recent past, the number of professionals working for many different industries including those who are doing SEO in Stony Brook, NY have fallen ill because of the pandemic has been overwhelming. Amongst them, many of those requiring extended hospitalization have not been able to resume work. It is here that the importance of professional disability insurance comes to light.
Advantages of disability insurance:
Disability insurance will pay you part of your income when you cannot work for a period of time either due to illness or accidental injury. A disability insurance broker can help you find the best coverage so that you have a safety net always in case you miss work. But, many are not sure about what disability insurance actually stands for, whether you need it at all, what disabilities it will cover, etc.
Frequently answered questions about disability insurance:
- Do you really need disability insurance?
This is obviously the most commonly-asked question because people tend to assume that the word “disability” only refers to some serious illness/injury. However, there are many injuries like hip/ knee problems or fractures that can stop you from working for a long time. In such a situation, if you cannot pay your bills or do not have emergency funds, you can be in serious trouble.
- Will disability insurance cover all types of disabilities?
While disability insurance policies may have distinct definitions of disability, most of them will not include disabilities arising because of self-infliction or participation in riots. You cannot claim this type of insurance for any disability during war or incarceration. If you have been disabled due to a crime in which you yourself have been convicted, you cannot expect compensation. In the case of short-term disability, you cannot be entitled to it if you have occupational injury or sickness. This is typically covered by Worker Compensation.
- Are short-term disability and long-term disability the same?
Short-term disability insurance protects your earnings for a period of 3-6 months; some are even less. They will cover almost 60%-70% of your income. Long-term disability however protects income when you miss work beyond 3-6 months. This covers 40%-70% of income and is more expensive than STD because of its coverage span.
- Is it possible to work part-time and continue getting benefits?
This entirely depends on the insurer as some policies allow this. But, in that case, they deduct your earnings from the benefits. When your policy comes with lifetime benefit coverage, your benefits can be extended if you also work part-time.
- What is the amount you can get from disability insurance?
You must understand that insurers will not offer you disability insurance to replace your income altogether. However, they can offer policies that will take care of 70% of the income. When you cannot get this from your employer, you can seek supplemental coverage to make up for the difference. The biggest reason to get this policy is tax-free benefits when you pay premiums by yourself. However, if your employer pays your premium, benefits are taxable.
These are some of the most common questions that people working in a marketing agency in New Jersey may have about disability insurance policies. Knowing the answers to these can help you figure out whether you should get this coverage and how you can be benefited from it.