Posted by John Coyle on Fri, Oct 03, 2008
You may not consider a broken bone, nervous condition or bout with influenza completely disabling, but such afflictions may cause you to miss work for an extended period of time, which could put undo stress on your finances and quality of life. Should an accident or illness ever render you unable to work and generate income, disability insurance could truly be a lifesaver. Many people believe that their workplace will provide necessary reimbursement in the event of a misfortune, but that is not always the case. Even if available, company-issued disability insurance is not always sufficient and may only provide a very small portion of your earnings each month. Tri-Star Insurance Professionals, Inc. of Plano, Frisco and North Dallas can give you the full rundown regarding supplemental policies to find one that best fits your needs.
According to the Health Insurance Association of America, about 30 percent of middle-aged Americans will suffer a disability of at least three months at any point in their careers. That being said, a quick lesson on disability insurance may come in handy someday.
What exactly is disability insurance?
Individual disability insurance is in place to provide you with a high, tax-free percent of your income if you cannot work due to a legitimate reason. As the details of every disability insurance policy differentiates between providers, aiming for the cheapest rate is not always the best idea. A quality contract will increase the likelihood of higher monthly benefits.
How Long Can I Receive Disability Benefits Through My Policy?
Monthly benefits are payable for a fixed period depending on the severity of the claim. Following a short waiting period after filing your benefits may last as long as a lifetime or as little as a two years. Generally, longer waiting periods are a result of a cheap policy. The most commonly available benefit periods are two years, five years, and to age 65.
How Much Disability Income Coverage Do I Really Need?
Experts recommend that a policy should replace 60 to 70 percent of taxable earnings. If purchased with after-tax dollars, your monthly reimbursement will usually be income tax free unless you have a group policy through your employer, which is always taxed.
What are some tips to obtaining coverage?
As insurance usually gets more expensive as you get older due to diminishing health, buying young is a smart move because you will be able to lock in a lower premium. Also, consider purchasing a noncancelable policy, which is protected from cancelation or adjusting premiums as long as you pay your premiums on time. Finally, comparing policies from at least three different insurers is ideal, and an independent insurance agency such as Tri-Star Insurance can do all the work for you.
If you want to learn more about individual disibility insurance contact Roger Harkins of Tri-Star Insurance today at 214-387-0600 or visit them on the web at www.tristarins.com. Give yourself peace of mind by knowing you will be financially covered in the event of an accident or illness.
Related Links
National Organization on Disability
Disability Resources
Texas Department of Insurance