Disability Insurance

If you were to get hurt today, and could no longer work, what would happen to your income? Could you make ends meet without a paycheck? If not, you may want to consider disability insurance.

Disability insurance is income protection insurance. It compliments health insurance and can replace lost income.

Buying a Policy

On the Job

Check with your boss at work to see if your company offers this type of insurance. You may find out it's one of your benefits and you don't even know it!

On Your Own

If your company does not offer disability insurance or you find the work policy to be too pricey, you can get a policy on your own. Talk to the agent who sells you your life, health, or auto insurance. If he doesn't offer disability coverage, he may be able to refer you to someone who does.

Shopping around

Here are some key things the Insurance Information Institute says to look out for before buying a disability insurance policy:

Disability?

Make sure you know exactly what the policy defines as a disability. Some policies pay out benefits if you are unable to perform the duties of your profession. Others will only pay you if you can't perform any job suitable for your education or experience.

Benefit Period

How long is the benefit period? This is the amount of time you will receive benefits during your life. Most experts say the policy should cover you until you're 65. At that point, Social Security disability will kick in.

Type of Protection

Make sure you know if your policy will cover you for injury, illness, or both. An accident-only policy is generally cheaper, but it may not provide enough protection.

Residual Benefits?

Does the policy pay residual benefits? This is when you can work part-time and still receive a check for lost income.

Did You Know?

At 40-years old, the average worker faces a 14 percent chance of dying before age 65. But, he or she faces a 21 percent chance of being disabled for 90 days or more.

Insurance Information Institute

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