What Is Disability Insurance?

Many people have their lives planned out once they get to the age where they can make decisions. They know the job, house, or car they want, how many children they desire, and when they are to retire. However, life sometimes goes against our plans.

An illness or accident at work or elsewhere may result in an injury that causes a disability. Also, the disability might make it hard to work, forcing you to stop working for some time, or even forcing you to retire early. In such a case, it’s natural to worry about how to obtain an income to maintain your lifestyle and provide for your family. 

However, you wouldn’t have this concern if you had disability insurance. This article explains disability insurance and what it covers. 

What Is Disability Insurance?

Disability insurance is a policy that provides income when a policyholder can no longer work because of a disability. You can get disability coverage through private insurance companies or from the government through the Social Security System (SSS).

To benefit from disability insurance, there must be clear proof that you stopped earning due to the disability. Also, this coverage will only compensate you for a part of your income before the disability. However, before claiming benefits, you must meet the qualifying factors. 

Under the Social Security System, applicants must establish that the disability keeps them from working. The SSS also requires that they show the disability will last for 12 months or result in death. On the other hand, private insurers might only ask you to show you can no longer continue the job you had before the disability. 

Note that disability insurance may have more expensive premiums if the terms and conditions favor the policyholder more than the insurance company. If there are less favorable conditions, the premium will be lower. 

What Does Disability Insurance Cover? 

Disability insurance covers partial and total disability and rehabilitation. An insurance company might also offer coverage for presumptive disabilities. But essentially, disability insurance covers every illness or accidental injury and extends to complications from pregnancy or childbirth. However, disability insurance does not always cover pre-existing health conditions.

How Much Disability Insurance Do You Need?

Generally, a disability insurance policy might cover up to 60% of your gross pay, and you might pay 1% to 3% of your yearly salary in premiums. Ultimately, the amount depends on how much coverage you buy. 

At Goldstein Healthcare, we will advise you on the best choice and provide competitive disability insurance plans. We will also help you with critical illness insurance policies. Learn more about what we can do for you by contacting our team of experts.