Why Do You Need Disability Insurance?

You would never think it would happen to you. Many people shrug off the idea that anything bad could ever happen to them. People tend to think that they will never suffer such a serious injury that they will end up unable to walk or without a limb. However, we are not invincible and it pays off to be prepared. Serious injuries are not the only reason for disability claims. Cancer, heart attacks, diabetes, and other illnesses lead to disability claims as well.

When you are thinking about buying disability insurance, ask yourself these questions:

1. How much of your income would you need to replace to continue your current lifestyle if you became disabled? This will help you to determine the monthly benefit to select.
2. How long could you wait before the disability benefits kick in? This will determine the elimination period, or the number of months you would wait for the policy to pay out.
3. How long would you want the benefits to last? The longer the benefit period, the higher the price of the policy.
4. How broadly would you define “disability?” If you are still able to work part-time, you can decide whether you want a policy that pays out a portion of the benefits.

You may choose either short-term or long-term disability insurance. With short-term disability insurance, you may have a short wait period, such as two weeks, after you become disabled and before your benefits are paid. It pays out for a few months to one year, depending on the policy, and usually replaces 60% to 70% of your base salary. 

Long-term disability insurance may require a longer waiting period, commonly 90 days, before benefits are paid. Benefits will end when the disability ends, and if the disability continues, the benefits will end after a certain number of years or at retirement age. 

Alexander Financial Services

If the unimaginable happens to you, contact Alexander Financial Services for help in finding the best plan. Alexander Financial Services was first established in 2009 and has since then been a client-driven business that is dedicated to helping our Greenville, NC clients get the insurance coverage they need.