Why Disability Insurance? Chances Of Becoming Disabled Are Greater Than Your Chances Of Not

If you and your loved ones depend on your salary forprovision. This means if you become disabled, you will
support, then you probably need long term disabilitynot have to keep paying for your disability policy.What
income insurance.Think about it: if you were to becomeare the conditions for renewing the policy? If you're
disabled, even for a few months, how would you andpolicy is not automatically renewable, the insurance
your family manage? Who would pay your bills?company has the right to cancel it.Payment period
Disabling illness or injury is one of the leading causes ofoptions are another consideration. Some policies will
bankruptcy in the United States.Most people do notonly pay for a certain period of time, sometimes for
realize that their chances of becoming disabled areonly two years. Other policies last a lifetime. The most
greater than their chances of dying prematurely. Yetpopular policies pay benefits until you reach retirement
they are more likely to buy life insurance than disabilityage, when you can begin to collect Social Security
insurance. For this reason, people in the insurancepayments.Most policies have a residual disability clause.
industry call disability "the forgotten risk.' According toIf you suffer a disability, very often you will return to
statistics from the Journal of the American Society ofwork part-time at first. Or because you were off work
Chartered Life Underwriters, if you are age thirty tofor a while, it may take you time to build your business
fifty-five, your chances of becoming disabled are twoback to the level it was before you became disabled.
to three times greater than your chances of dying.IfYour insurance should provide income for both these
you are thirty-five years old, you have a 50:50 chancescenarios.Check over the policy for a recurrent
of experiencing a disability lasting last three months ordisabilities benefit. A recurrent disability is one that
longer before you retire. One in seven workers willhappens after you recover from your original disability.
become disabled for more than five years before heYour insurance should waive a new waiting period and
or she reaches age 65.Many people mistakenly believeor not require proof that the two disabilities were
that the government or Worker's Compensation willrelated.When you buy disability insurance, you buy it
pay them an income if they become disabled. Actually,according to your income level. The more money you
more than 80% of the people who apply for Socialmake, the larger the benefit of your policy. But you
Security disability benefits are rejected. Social Securityalso have to figure that your income will rise as you
does not pay benefits for partial or short-term disability.get older. For this reason you want a future increase
Your disability has to either last a year or be expectedrider or automatic increase rider. These riders allow
to last a year before you can collect Social Security.you to keep your policy but increase the amount of
Worker's Compensation pays only if you were injuredyour benefits based on your increased earnings as
on the job and benefits are often limited to a fewyou grow older.When you buy your insurance, certain
years.Your health insurance will cover your hospital,factors will affect your price. You will pay less for the
doctor and other medical bills, but you will still not haveinsurance if you decide to replace 50% of your income
a salary. Long-term care insurance only covers billsinstead of 80%. You also pay less if you opt for a
from nursing homes or assisted care center. Disabilitylonger elimination period. The insurance company
insurance, however, does not pay bills. Instead thefactors in your current health and may exclude
insurance company gives you money on a regularpreexisting conditions. Women and smokers may pay
basis. It is designed to replace your salary so that youmore for disability insurance because they make more
and your family will not experience financial hardshipclaims than non-smoking males. If you are in a high-risk
during any period when you are too sick or injured tojob, your policy may cost you more.Disability insurance
work.What should you look for when you are buyingpolicies can be confusing. It is always best to sit down
long term disability insurance? First, the insurancewith a professional insurance agent to discuss the
company itself should have a top rating from Moody's,terms of the policy together and to ask questions until
A.M. Best, and Standard and Poor. These agenciesyou completely understand the details of the policy
rate companies in terms of capitalization, growth,quotes being presented.Launching his insurance career
earnings and other indicators of financialin 1985, Gary Stuart successfully built and cultivated an
stability.Secondly, you should make sure youagency, which specialized in all aspects of group health,
understand the terms of your policy. Some policieslife, long term care, disability income insurance and
require a waiting period before you start receivingmore! In 2000, Gary translated his more than 15 years
benefits. For example, your policy may have aof experience in the insurance industry to the
six-month waiting period before benefits are paid. Indevelopment of which provides consumers with an
this case, your benefits would begin six months fromopportunity to learn more about their insurance options.
the time of disability.The waiting period is often calledGary recognizes education as the key to purchasing a
the elimination period. Choices usually range from 30policy best suited to the needs of the individual.
days to 720 days.Look for a waiver of premium