4 Ways Disability Insurance Protects You

Disability insurance protects you in the case you are injured or ill and can no longer perform your daily responsibilities. Whether you work at home or in an office, disability insurance can provide key benefits if you have a medical emergency. The expense to elect disability insurance is relatively low; it can be obtained for less than twenty dollars a month. The expense will pay off in only a few, rare circumstances. However, if you need it, you will be glad you have it.

#1 Provides Short-Term Salary

There are two types of disability insurance: short-term disability and long-term disability. If you are injured or ill for up to twelve months, your short-term disability plan will likely be the coverage you will receive. Short-term disability insurance provides a portion of your previous salary while you cannot work. The portion depends on your plan, but most plans cover between 60 and 75% of your previous salary. Your employer will not continue to pay you while you are out of work. However, many employers cover a portion of the cost of disability insurance in your benefits plan.

#2 Provides Long-Term Assistance

If you are permanently unable to perform the duties of your work, long-term disability will be your lifeline. Long-term disability, like short-term disability, covers you in case of either injury or illness. Long-term disability pay offs are more complicated than those received in the short-term. Instead of providing you with a portion of your income, they will attempt to provide you with a livable amount according to what you could be making if you were not disabled. You may need to provide information about all the ways your life is affected by your disability, and filing these claims can be burdensome. The payments will be very necessary to your financial stability, though. 

#3 Replaces You in the Home

Disability insurance is not just about replacing an income for you in the long run. The protection can also help you replace the tasks you once performed in the home. For example, if you were able to mow the lawn before your injury, you may no longer be able to perform this task. Your disability insurance can cover the expense of having a lawn service. Again, filing these claims can be burdensome. You will need to show you were the sole provider of the task before your illness, and you will need to show you need to pay a replacement at this point. 

#4 Assists with Additional Expense

There are other expenses associated with becoming permanently disabled that you will need help covering. For example, if you need to fit your home with ramps for a wheelchair, you may get some financial assistance from your disability carrier. The same is true for buying a new car and making other accommodations. Depending on your specific disability, you will have to provide unique claim forms in order to recover from your insurance company. Illness disability benefits can take longer to pay out and be more complicated than injury benefits, which usually start immediately.