Do I Really need Disability Insurance Coverage?

Many individuals struggle to understand what disabilitypercentage of your income based on your occupation,
insurance covers. There are two basic forms ofthe hazard of your responsibilities, and your income.
disability insurance, short-term and long-term disability.The elimination periods for disability policies usually
Short-term as its name implies is for a short period ofrange from 30-365 days. If you become sick or
time usually less than a year. Group short-termdisabled, exceed the elimination period, and become
disability is more prevalent in the work place thancertified by a physician as unable to work, you may
long-term. One of the failures that individuals make isreceive a tax free benefit except in rare cases (your
assuming that their policy covers 100% of their income.employer pays for the policy). The policy is
The policy usually covers up to 66 2/3%, it may becoordinated with any group disability benefits you may
only be 50% for 13 weeks only. (Check yourbe receiving as well as Social Security Disability
employee handbook) Uncle Sam allows you to get theInsurance if you qualify.Things to consider when thinking
benefit tax free, but you cannot get more in benefitabout Disability Insurance:Can I get sick?Do accidents
than your pre-tax salary. It is very important thatoccur?Can I afford to self-fund?Can I live off my
people read their employee benefits carefully.The twosavings?Does my coverage at work cover short-term
main definitions used to define if benefits under a& long-term disability?Matt McWilliams is one of the
disability insurance policy are paid include ownco-founders of HometownQuotes.Com, an online
occupation and any occupation. Own occupationinsurance quotes web site. He is originally from
disability means you are unable to perform thePinebluff, NC and attended Middle Tennessee State
substantial duties of your current position in a nutshell.University. He is considered an expert in the field of
Any occupation includes the duties of a job that youonline insurance shopping and finding new ways to help
have been trained for through education, training, orconsumers save money on their insurance.
experience.Individual disability policies cover a