Compelling Facts about Disability Insurance
December 30, 2013
Disability insurance is a very important resource that is unfortunately overlooked by many. It allows purchasers to insure their income against loss caused by injury and subsequent disability. For those working in fields that are dependent on their continued health and physical ability, disability insurance can be a critical benefit to have in the instance of an injury.
One of the most striking facts associated with disability insurance is the rate of disability in the United States. The Bureau of Labor Statistics estimates that 18.5% of America’s workers are disabled at any given time. The National Treasury Employees Union asserts that 1 in 4 workers will sustain a disability before they leave the workforce.These are taken as averages across the whole of the workforce. Naturally, this means that the statistic should be read somewhat differently if you work in a white collar position. However, it means that those that do physical labor as part of their employment should pay even closer attention. Individuals working physical jobs are both far more likely to be disabled and far more likely to be inhibited from working by a disability.
Many companies offer disability insurance for their employees. For those who are not employed by such companies and those who are self-employed, there are other options. Some insurance carriers offer specialized niche coverage such as disability insurance for physicians.
Many people misunderstand that “disability insurance” is not a single thing. There are many different forms that can provide very different kinds of protections.
Individual disability insurance is an option for those that would like to purchase their own policy. These are generally the simplest forms of disability insurance. They tend to offer a certain number of benefits at certain levels of premium. Higher premiums tend to entail higher benefits, but it is also possible to pay higher premiums for broader coverage. What constitutes a “disability” is one of the most important factors to pay attention to when seeking a policy.
There are also disability insurance policies for those that are employers. Key person disability insurance is a means of insulating the company against the costs associated with losing individual important workers. These tend to have specialized clauses in the case of permanent disability that can assist an employer in replacing the key individual.
The most important thing to keep in mind about disability insurance is that it usually does not constitute a single payout. Unlike car insurance which is protects its owner from a certain amount of loss or health insurance which will pay up to a certain portion of a medical bill, disability insurance tends to offer ongoing benefits to bridge the gap during which the insured party is injured. This tends to mean premiums are higher for disability insurance, but the benefits are obvious.
The importance of disability insurance simply cannot be overlooked. Whether you are a worker or an employer, disability insurance can handily stand between you and financial disaster if you should be injured. Seeking a policy that fits within your income may be a wise decision if you believe you could sustain an injury under normal circumstances.