5 Tips for Disability InsuranceDisability Insurance: 5 Tips you need to know before you buy

Unfortunately, Disability Insurance (or DI) is something we don’t think about. There are facts about disability insurance that people need to be aware of to see how they can help themselves or a loved one if they become disabled. In Fact, nearly 18.5 % of Americans are currently living with a disability, roughly 3 in 10 Americans will suffer a disability lasting 3 months or longer before the age of 65. If you are shopping for life insurance, you may not have thought much about the purchase of Disability insurance. If you do not have Disability insurance, you can protect your rights in court with the help of the Dominguez Firm trial lawyers. However, there are 5 facts about why disability insurance is important.

Here are 5 facts to consider Disability insurance

  1. DI only replaces a portion of your income, if you were to become ill or injured. If you are currently needing all of your income to maintain your lifestyle, you’re probably going to have a hard time making ends meet.
  2. DI is income protection to individuals who become disabled for a long period of time. You may be thinking “What about social Security Disability?” Social Security Disability Income is funded through payroll taxes, but to be able to benefit from SSDI you must meet certain criteria. There is a 5 month waiting period for the benefits. The amount of the monthly benefit after waiting period depends on your earning records. Last Social Security Disability has proven to be difficult to qualify for.
  3. One of the most significant benefits of disability insurance is that since you pay the premiums, the benefits you received are tax-free. On the other hand, when your employer provides Disability Insurance, all benefits you received under this policy are taxable as ordinary income
  4. Workers compensation will not cover you if you weren’t injured on the job. Less than 5% of injuries are work related. Most long-term disability claims are for illnesses, not accidents.
  5. Understanding Disability Insurance:
    1. Short-term Disability provides replacement of your wages if you are to become temporarily unable to work. In this case is good since Social Security Administration doesn’t provide coverage for those who suffer only temporarily disability.
    2. Long-term Disability on the other end provides you a more permanent income if you suffer an injury or illness & you are not able to work for long periods of time.

If you are dependent on your income, you can qualify as a candidate for disability insurance. At Wealth Guardian Financial, we will help you the best with disability insurance policy to ensure you can live your life without worrying about a potential injury derailing your future.

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