It is generally understood that life insurance can sometimes be an essential part of an estate plan, especially if you have young children, but fewer people see the need for disability insurance. While planning your estate and asset protection strategies, you will also want to consider what would happen to you and your family if you should become temporarily or permanently disabled.
According to the U.S Census Bureau, in 2000 almost 20% of the population suffered from some type of disability. There have also been studies that found that a healthy 20 year old has about a 30% chance of becoming disabled sometime before they are old enough to retire. Few people believe that they will ever have to worry about a disability, which is evident by surveys that reveal that less than half of Americans have any type of long-term disability coverage.
It is a fact that anyone can suffer from a long-term disability. There are a number of conditions that can cause disability, including back injury, cancer, heart disease, stroke, etc. It is commonly believed that most injuries that result in disability happen on the job, and therefore would be covered by Workmans Compensation. The truth is that most long-term disabilities do not happen on the job, so Workmans Compensation would not cover them.
There are a number of various policies that you can buy to cover long-term disability; the cost of premiums will depend on several different factors, such the amount of coverage that you want, your gender, age, and general health. The younger you are when you purchase your policy, the less you are going to pay.
Some questions youll want to ask before you purchase a disability insurance policy include what types of disabilities are covered, what percentage of your salary will they pay, as well as what the waiting period is before your insurance kicks in. You will also want to find out if they guarantee your rates, so that you are not constantly faced with rate increases.
Although the thought of paying another insurance premium likely isnt pleasant, if you should suffer from a disability, this type of insurance is very valuable to have.