There is no such thing as a guarantee that life will just flow by without any incidents. Just think, one day you’re fine and the next you’ve been injured or have become seriously ill and you can’t go back to work. To protect yourself and your family, look to disability insurance to help get you through a rough time.
Smart Money suggests taking a look at short-term vs. long-term disability. Short-term will take effect when you are unable to work due to an illness, injury or the birth of a child. Most employers offer short-term coverage, so you’ll want to check to see what your company’s policy is. Long-term picks up where a short-term ends. These policies can last anywhere from a specific number of years or until you reach retirement.
All In Good Time
When you are looking at long-term, you’ll want to think about how much coverage you and your loved ones might need. A typical plan replaces anywhere from 50-60% of your salary. When it comes to premium prices, you can choose between level or increase as you age premiums. The level premiums will stay consistent over the term of your policy. Premiums will also be affected by how long your waiting period is for the long-term policy. The longer your waiting period is, the cheaper your premiums will be.
Own vs. Any
You’ll also get to choose between an “own occupation” plan and an “any occupation” plan. The “own occupation” plan covers you when you can’t do your specific job. “Any occupation” will only cover you when you can’t do any work given your education, experience, etc.