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Business overhead insurance Quotes

  
  
  

Business Overhead InsuranceBusiness expenses are covered for disabled persons with this type of insurance. There are many business overhead costs that business owners have to deal with every month such as rent, utilities, and employee salaries. Since a business may earn less when its owner becomes disabled, it can become difficult to handle all of these expenses. Business overhead insurance handles them for you.

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Because business overhead insurance has many technicalities, it is in your best interest to speak with someone skilled in the insurance field. Our professionals will guide you with information on insurance policies and what they cover. We have partnered with the nations top business overhead insurance underwriters to bring you the best plans at the best rates. Contact us and one of our experienced represenatives will provide you with your free business overhead insurance rate comparisons. 

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All about Private Disability Insurance

  
  
  
Private Disability InsuranceWhen somebody is injured or can't work due to some other form of disability how do they pay their bills? If you are not working, you are not earning and the burden of your expenses won't just go away. That is why private disability insurance was created. Private disability insurance will pay a benefit of 50 to 70 percent of a person's income that was earned before the disability occurred. This will help the person be able to make ends meet until they are able to go back to work.

While some may think they do not need it, everyone should consider it. Married couples may think that they simply do not need it because they will always have each other to rely on. But as hard as it is to get by these days on two incomes, imagine the burden of only one. To that end it is even more important that single people look into the coverage as they only have themselves to rely on. What would you do if you lost all of your income in the blink of an eye?

When you think about disability insurance it is important to note that there are different kinds. First off there is short-term disability insurance which will cover you if you are injured or disabled for a short amount of time, usually up to six months. These benefits typically start at your whole income and work their way down to 60 percent.

Then there is long-term disability insurance which is designed for exactly what it sounds like; the long-term. This type of insurance will pay benefits anywhere from a period of 5 years to 10 years unless otherwise ended by a provision such as age.

There are actually three types of long-term disability insurance coverages and the type depends on the party footing the bill. There is employer paid, which is usually of a shorter duration and only covers up to 60 percent of lost income. It is also important to mention that if your employer pays for your disability insurance all benefits that are paid out to you will be taxable. Next there are Social Security benefits which can be hard to obtain and will have many rules and provisions about keeping it coming in for an extended period of time. Also, the money that you receive from Social Security will depend on how much you contributed over your working life. The last type is private long-term disability insurance and is paid for by you so you therefore dictate the coverages.

The best way to be sure that you will be covered until your retirement age is by obtaining a private disability income protection plan. This can come in many different forms such as a rider to your existing life insurance policy, as an individual policy, as a group policy, as a group association policy, or as a specialized group policy. It is important to know that policies will vary according to your needs and of course the providers themselves. Many will offer to cover you if you cannot go back and perform the exact same job as you did before you were disabled and others will not. Some will start out one way and convert to another way. The bottom line is that it pays to know what you are getting into. Before you leap into coverage you will want to explore all your available options and be sure that the plan you are going to go with will provide you and your family with everything you will need should you become disabled.

Your most valuable asset that you have to offer both yourself and your family is your ability to go out and earn a living in order to be a provider. Because of this your family is dependent on you to earn a living and if that is taken away due to a disability you will want to be sure that you are covered so that your family doesn't have to suffer any undue hardship. While it is certainly not mandatory to obtain such coverage and it will represent yet another bill to be paid, it will also bring you a very welcomed piece of mind; and that in itself can be priceless.

Group And Individual Disability Insurance The Differences

  
  
  
Group Disability insuranceMany times when people find that their company LTD just went up in price they will seek out prices for an individual disability insurance plan thinking that they are one and the same. They will want t to know if the deal they are getting at work is a good one. The answer to that question every time is that it all depends on your definition of a good deal.

Sometimes there is a good deal on the price and sometimes there is a good deal on the coverage, but the two rarely are said about the same plan. Cheap policies are not usually very good and very good policies are not usually very cheap.

Often people get woken up to this fact when their LTD at work shoots the price of the premium through the roof. It creates a sort of shell shock. But most group plans will start out with a lower rate for a set amount of years and then after that they are free to jack up the rates as they see fit. When this happens the employees will often pass the payment through to the employees.

While an employee who was getting coverage for free may not have cared about the cost, that same employee will bark up a storm when $20 per paycheck is coming out. Even if the employee was paying all along and then sees an increase it is likely to cause questioning.

In both cases the employee may seek out an individual plan to sort of test the waters a bit thinking that if they have to pay something they want to pay less. The problem is that there is no individual plan that will cost less than a group LTD plan. As you can already feel there are going to be differences in the two types of plans but if you are looking for a cheaper route with an individual plan you are out of luck.

The natural reaction after learning that an individual plan will cost much more than the group LTD is the thinking that the group plan is a better deal because it is cheaper. This is false. The only way this thinking pans out is if they never get disabled to which they would have paid far less for coverage through the years. But if they are one out of every seven Americans who become disabled for more than 5 years then that ‘good deal' just got really bad in a big hurry.

When you look at LTD and individual disability insurance, or IDI, you have to look past the price tag. As with many things in life, you really do get what you pay far. The reason that polices are more expensive is due to the fact that they will pay more benefits in more situations. But the cheaper group plans have many holes in them and will not pay benefits where an individual plan will. Add to this the fact that most group plans provide adequate service for two years but then fall by the wayside and you begin to see why you pay more for IDI.

Here are some other factor that separate LTD and ID:

  • Definition of Disability: Most group plans go with a modified own-occupation and switch to gainful occupation after just two years. This can leave you high and dry and dropped. IDI however lets you determine the definition right from the get go.
  • Portability: If you switch jobs you will not be able to take your LTD with you as it is part of the group plan for where you work. IDIs however are owned by you and if you switch jobs there will be no lapse in coverage provide you always pay your premiums.
  • Taxes: LTDs which are paid for at least in part by your employer will be fully taxable if benefits are paid, but with IDIs you pay the premiums so the benefits would be tax-free.
  • Residual and Partial: Some group plans will pay residual disabilities for up to two years and many will not offer it at all. IDIs will typically have better overall provisional benefits that can be chosen.
  • Mental: Most group plans will limit mental disability to only two years while many IDIs will not cap mental disabilities and treat them as any other disability would get treated.
  • Monthly Maximums: Both plans have maximums that will be paid each month but the group plan is typically 60 percent of salary or $5,000 per month. With IDIs you can choose a higher percentage and caps are usually set at a much higher $15,000 per month.
  • Covered Income: Most LTDs will only cover your base salary and will leave out commissions and bonuses where as many IDIs will include them.

Too many people get caught up with the perception that their group coverage will pay out as much in benefits and be just as adequate as an IDI but the reality is not so. While having group benefits is indeed a good start it is not going to offer you everything that an individual plan will. That is why many will ultimately choose to supplement with an IDI plan so that they can raise their percentage of coverage by another 10 to 20 percent.

The reality is that although IDIs are more costly, they offer far more coverages and should be utilized to ensure that you are always covered should you ever be faced with a disability. Though the difference may be an IDI costing $2,000 to and LTD costing $200, that is no reason not to be skeptical of the cheaper policy. If you saw a new television for $700 and the same one later on for $7.00 wouldn't you ask what was wrong with the cheaper one? Well long-term insurance polices should be no different.

Don't get caught up in price. The idea behind disability insurance is to protect yourself and your family should you become disabled and not be able to work. You have to be sure that you have coverage that will not just be there for the first two years but that will be there for longer if necessary. Don't take chances with your future because becoming disabled will be hard enough and you will not want to deal with the added stress of financial problems on top of everything else you will have to deal with.

Not Having Disability Insurance can Really Hurt!

  
  
  
You are young and vivacious and buying disability insurance is probably not very high up on your list of things to do. Besides, you work a desk job so what are the chances you will ever need it?

Disability insurance claimsNo one expects to become disabled, yet it happens every day and usually without warning. Having disability insurance is an effective way to protect your lifestyle in the event you are no longer able to earn and income.

  

  

What injuries and illnesses account for the most disability claims?

This chart is a breakdown of the types and relative prevalence of disabilities drawn from disability insurance claims at the end of 2006.

According to the Health Insurance Association of America your chances of having a disability that will last longer than 90 days is about 30 percent if you are between the ages of 35 and 65. You may think of a disability to be something major but did you know that many disabilities are the results of broken bones, troubled pregnancies, anxiety troubles, or other events of the like?

Unless you are rich beyond your wildest dreams then you need to consider having disability insurance. What would you do if your income suddenly stopped coming in? No coverage can mean your debt piling up and putting undue financial stress on top of your disability.

Many people think that just because they have disability coverage through their work that they do not need private coverage. But the problem with most work sponsored programs is the fact that they only pay out 60 percent of your salary and they typically cap the pay out at $5,000 per month or $60,000 per year. If you are a high salary earner you can see how this amount may in fact be less than 60 percent for you. Add to that the fact that all benefits paid out are taxable because the employer is the one paying for the plan. Now that percentage has dropped again.

There is Social Security benefits that can be realized to help, but they are among the hardest to obtain. Just to qualify you have to have been disabled for at least a year and have no hope of recovery. Even if you do meet the requirements, the typical benefit is less than $2,000 per month.

To that end you may need to consider at least getting supplemental insurance or full blown disability insurance if you have none but the process can be daunting. Here is what you need to look for:

  • Company Strength: Before you make any decision about which provider you go with check out resources such as moodys.com, standardandpoors.com, and ambest.com where you can go and see all the different providers strengths and weaknesses. At these online resources you will get an unbiased glimpse into the companies so that you can make an informed decision.
  • Find Non-Cancelable: There are three types of terms that will determine how easy it is to renew your policy. The first is the non-cancelable contract and is worth it if you can afford it because it locks in your rate for a set amount of time and does not let the provider drop your coverage. The second, less desirable plan, is the guaranteed renewable plan which won't let the provider drop you but will let them raise your rates at their discretion. The last of the three and the one to avoid is the conditionally renewable policy which lets the provider put any conditions it wishes inside the plan.
  • Define ‘total disability': Look for the terms ‘own-occupation' and ‘any-occupation' when obtaining a disability plan. This is how your disability will be viewed. If you get own-occupation you will get disability benefits if your disability stops you from doing the job you had before the disability occurred. Even if you are able to do other part time work somewhere else that is not related to what you were doing, you will still receive benefits. However, if you have any-occupation then your disability will have to be so severe that you are unemployed and unable to work at all. Many providers will start you off as own-occupation and move you later on to any-occupation so you have to be aware of that.
  • Seek Partial Disability: Obtaining partial or residual disability means that you will get benefits if your disability still allows you to work but at a reduced capacity. For example, if you normally worked a 40 hour work week and your disability knocks you down to 20 hours, then you would receive benefits in proportion for the other 20 hours you cannot work.
  • Disability Insurance Riders: Riders are provision put into your plan that allow for change down the road. These are a good idea if you are younger and two that you will want to take a good look at are the future purchase option rider, which will allow you to add coverage when you make more money, and a rider that will adjust with inflation.

While there is no set price for the cost of coverage, you can expect to pay between one and three percent of your annual income. That is because the price you will pay depends on your age, gender, health, coverages, and other factors of the like.

One big factor that determines the premium price you will pay is the elimination period. This is the time that it takes for your benefits to kick in after the disability has occurred. Most people go with 90 days but you can get anywhere from 30 days to 720 days. The longer the elimination period, the cheaper the premium. Just be sure you can cover the cost of everyday living until your benefits kick in.

Another big determining factor is the term of the plan. Most companies will offer to cover you from two to five years, or set the term by age like 65 or 67. Many people choose to go until the age of 65 as they will have Social Security to rely on at that stage in their lives. Basically, the longer term your policy is, the more expensive it will be.

Finally your occupation is a huge factor when it comes to coverage. Providers will look at what you do for a living and determine how likely it is that they think you could become disabled. The more likely they feel you could be disabled, the higher your premiums will be. If you have a job such as construction, you may not be able to get coverage with a top name provider. You will still be able to get coverage with a smaller provider but you will likely get a stripped-down plan without all the fancy provisions. Still, something is better than nothing; especially if you find yourself with a disability.

Disability Insurance after Divorce

  
  
  
Disability after divorceWhen you determine what type of insurance coverage you need part of the process is to play the ‘what happens if' game; what happens if there is a fire, what happens if there is an accident, and so on. This rule applies to if you are recently divorced.

Being recently divorced probably means that obtaining insurance is right on the top of your list of things to do. When you do get around to sitting down with your insurance agent you should ask them about long-term disability, or LTD, insurance and how you could possibly benefit from it.

When most people think about insurance they think about getting, home, health, and automobile insurance, but what happens if you are hurt and can't go back to work for an extended period of time? Yes your medical insurance will pay the medical bills, but what about the rest of the bills that come in month after month?

When you are unable to work you are unable to make money and this can become very problematic very fast. If you do have savings it can be burned up rather quickly as you will need to pay the expenses of everyday living. If however you have LTD insurance you will not have to worry about this nightmare scenario. LTD insurance will give you the money you need to pay the everyday expenses should you find yourself not able to work due to cancer, injury, heart problems, and many other qualifying factors. You can use the money you receive to pay for things such as your phone bill, your electric bill, your mortgage, your food, your clothing, and any medical rehab not covered by your insurance provider. Put simply, LTD insurance can mean the difference between a normal life and a broke life.

If you get your disability insurance through your work health care plan then it is known as LTD insurance. If however you get disability insurance on your own it is known as Individual Disability Income, or IDI, insurance. When you are looking into either it is important to know what to look for and understand that not all disability insurance is created equal.

All needs are unique so it pays for you to shop around to ensure that your specific set of circumstances will be met. Here are some tips to help you decide what you need:

  • What's the Wait: The waiting period is the time it will take for the disability insurance to fully take hold after the disability takes place. Most LTD insurance has a waiting period of 90 days but providers will vary. Typically, the shorter the waiting period, the more the premium.
  • What's Covered: Before you decide on what coverage is right for you find out exactly what each providers definition of a disability is. The definition tends to vary greatly from provider to provider and also between employer sponsored plans and individual plans so be sure you ask all your questions up front.
  • How Much Coverage and for How Long: You can obtain disability insurance that will cover between 50 percent of your pay all the up to 80 percent or more and everything in-between. Of course the higher the coverage, the more your premium will be. This needs to be considered though as you may not be able to get by on only 50 percent of your current income. You also need to find out how long you will be covered for. Some companies will cover you for up to three years and others will have a cut-off age so you need to find out ahead of time.
  • Will Benefits Increase: As the cost of living goes up with each year that passes you may find that a standard coverage plan will not work for you. Some plans will go up with inflation and some will not. You must ascertain which ones are best for you before you decide.
  • How Much is it: There are many factors that go into determining how much your premiums will be. Factor such as age, health, smoking status, coverage desired, and more all go into the process of determining what you will pay. It is also worth noting that LTD rates are considerably less than IDI rates in most cases.

One in three Americans will become disabled by the time they are 65. This may not be something that you think of when you are young but the fact is that the younger you are when you get disability insurance the easier it will be on your wallet. If you wait until you are older and have problems that are arising then you may be in for a much higher premium.

Most importantly, before you sign on the dotted line, be sure that the insurance provider you are going with is a reputable one. There are many cheaper providers that are fly by night and may not pay out in the end. A good place to look into the stability of an insurance provider is the Standard and Poors Insurance Rating Service or A.M. Best Company. Both can be accessed online and will give you a truly unbiased look at the different providers of disability insurance.

One out of five people will experience a long-term disability while in the workforce and with odds like that it pays to look into long-term disability insurance. This is especially a concern for those of you who are single parents and only relying on your own income to raise your children. Having long-term disability insurance will give you a better option for living rather than having to ask friends and family for money to help you in your time of need.

Just as with many types of add on insurance, LTD insurance and IDI insurance are totally optional. While it will represent another bill that must be paid month in and month out it will also represent piece of mind which you cannot put a price on. You will be able to rest easy knowing that should something happen to you and you are unable to work for an extended period of time that you will be able to maintain a normal life until you can successfully return to work.

Should You Buy Disability Insurance Riders?

  
  
  

Disability insurance ratesWhen you have decided to get a disability insurance plan, you will then need to decide what riders or extras you want. Some of the riders will cost you, and cost you big, but they can be life savers. For example, ‘own occupation' coverage will cover you if you cannot perform the exact same job as you did before you became disabled. This can cost you an extra 40 percent on your plan but if you can afford it you may want it.

 

Other important riders to consider if you can afford them are things such as retirement age, cost of living adjustment, and future purchase option. These break down as follows:

  • Retirement Age: Retaining your coverage until your retirement age will likely cost you up to an extra 15 percent.

  • Cost of Living Adjustment: This may add 20 percent to the policy but will cover you when inflation makes your cost of living go up.

  • Future Purchase Option: This is a big one and will likely run you an additional 25 percent but will allow you to increase your coverage at a later date if you are making more money with the best part being you will not be required to take another physical.

You should also be sure to check that your plan will not be able to be canceled at any time from the provider and that your renewal will renew at the same rate provided you pay your premiums on time. This type of coverage is usually automatic with most plans but it is certainly worth checking out just in case.

There are now many types of insurance that you can just go online to obtain. However, when it comes to long-term disability insurance it is probably in your best interest to sit down with a professional and thoroughly weigh out all of your options. Though the conversation may not be the most fun you can have it is most likely going to be one of the most important conversations you can have. If you end up being disabled it will end up being the absolute most import conversation of your life.

Should You Obtain Disability Insurance?

  
  
  
Nobody thinks that a long-term disability will happen to them but the odds are not in your favor. According to the American Council of Life Insurers, one out of three Americans ages 35 to 65 will become disabled for more than 90 days. One out of seven Americans will be disabled for a period of over five years. Still think it can't happen to you because those represent freak accident? Well consider the fact that most disabilities are caused by illnesses such as heart disease of cancer. When you are disabled the loss of income can be so bad that if you are not protected you may soon find yourself in the poor house.

Cost of disability insuranceFortunately there is disability insurance. Disability insurance is usually offered though your work sponsored health insurance plan and can cover up to 60 percent of your salary should you experience a long-term disability. Private and supplemental plans can cover up to 80 percent of your salary, but none will offer you 100 percent for fear that you will then never be motivated to return to work. Benefits usually last for a certain period of time or until you reach retirement age. Benefits will usually stop at retirement age as you would no longer then be dependent on work generated income to live. If you have to pay for the premiums yourself, any benefits that you would receive would be tax-free.

Long-term disability plans will vary as much as the colors in the rainbow. Some will offer wonderful coverage and be a bit costlier and some will be cheaper but also full of holes. Typically if you are trying to save a lot of money and go with a really cheap plan you will find it ultimately worthless.

It is worth knowing that there are different types of long-term disability plans and you can either obtain a group plan or an individual plan. A further breakdown follows:

  • Group Disability Insurance Plans: The first thing to do if you are not self-employed is to inquire with your employer to see if they do in fact offer long-term disability coverage. About half of the businesses in the US that are mid to large sized do offer a group plan, but even if your work does it may not suit all your specific needs.

Typically a group plan will cover you for 60 percent of your salary and this can be offset by other benefits that you may receive such as social security or workman's comp. But many group plans have a cap and if their cap is $60,000 per year and you make $200,000 per year you will receive considerably less than the 60 percent.

Another drawback is that most group policies will limit the time they will pay out benefits to only two years. Once that time is up if you can't return to work you are left holding the bag so to speak with your bills.

  • Individual Disability Insurance Plans: These plans are for those who are self-employed or for those who are looking to supplement what they have through work. For supplementing this can be great because you can get additional coverage of another 10 to 20 percent above what you will get through your work's group plan. You may also be able to get individual coverage for six figure salary plus bonus money, which will not ever be offered by a group plan.

If you can afford to supplement it is really a no brainer. You cannot put a price tag on piece of mind and because you never know what will happen from day to day it pays to be covered. That extra 10 to 20 percent could mean the difference of you keeping your house or losing it to foreclosure.

Unfortunately obtaining an individual disability plan can be a tricky business. There are a huge variety of factors that go into determine what your premium will be such as your age, gender, health, occupation, and more. Also the amount of coverage you desire will effect what your premium will be. So there is really no set price as each person will vary according to their needs and their circumstances.

One major consideration to make before you get coverage is to determine how long you could survive after a disability without any help. Every plan will have what is called a waiting period and these can vary from 30 days to 120 days. The shorter the waiting period, the higher your premium will be. So one way to save money on your premium is to go with a plan that has a longer waiting period, but you must be sure that you will be able to weather the storm for the allotted amount of time.

You will then need to decide what riders or extras you want. Some of the riders will cost you, and cost you big, but they can be life savers. For example, ‘own occupation' coverage will cover you if you cannot perform the exact same job as you did before you became disabled. This can cost you an extra 40 percent on your plan but if you can afford it you may want it.

Disability Insurance and Diabetes

  
  
  
If you have diabetes then chances are that you know how hard it is to obtain decent insurance. You may think that because most types of insurance are so hard to obtain because of the disease that obtaining long-term insurance will be impossible. While it is no easy task, it is not impossible and if you work with the right insurance agent and are ready for a handful of rejections you can find good solid disability insurance.

Disability Insurance For DiabeticsDiabetes can strike anybody. Many people think that diabetes is reserved for those over 40 and overweight but that is merely a stereotype and an inaccurate one at that. Anyone from children to seniors can get diabetes regardless of their age, health, or weight.

When it does come time for you to begin to shop for disability insurance you should plan to start at the top. This does not mean to apply for coverage with several companies at one time and then wait to see who offers you the best price, but rather taking the top company and seeing what they have to say before you go any further. If they say no then go one step down and so on.

Here are the levels you can expect to obtain if you are a diabetic:

  • Acceptable: The bottom of the barrel is a sub-standard insurance policy which will have a total monthly benefit just as any other policy would. The definition of total disability will be gainful occupation which will mean that in the first year of your disability you will only get 33 percent of the total benefit and the 66 percent for the second year and finally the total benefit in the third year. While not the best, it is still better than nothing.
  • Good: A good middle of the road contract with a middle of the road provider is the next rung up the ladder and will include many provisions and definitions that will make it a bit more restrictive that the top options. You will not likely see own-occupation benefits, and you will more than likely be restricted on mental disability but it is still a viable plan. At this level a diabetic with control over the disease should be looking for coverage until age 55.
  • Better: If you can get it, a five or two year benefit period with a non-cancelation policy is a wonderful plan. Ratings of 50 to 100 percent should be viewed as a good offer from the insurance company. If you can get this type of coverage you will want to see if you can get 30 day elimination period as well.
  • Best: The best and hardest to get for a diabetic will be a ‘to age 65' or a 5 year benefit policy with a non-cancelation and guaranteed renewable policy. Any policy issued to you with a rating of 50 percent or under and that offers residual benefits is a great policy to have and means that you have done well in your quest to obtain disability insurance.

The type of policy that you will be able to obtain will of course depend on your particular circumstances and how well you control your diabetes. In any case there will be many riders such as future add-ons that you will probably never be able to obtain, but it never hurts to ask if that is your desire.

When it comes to the control of your diabetes you will have to prove to most providers that it is as well controlled as you say. This can be done with the Hemoglobin A1C blood test which will give the provider an idea of your average blood glucose levels for the past three months. Most providers will administer this test during your time of application and they will also require a track record from your doctor of your HA1C results over the past year. If your average for the past year and beyond is below 6.2 then you are on good shape and will probably receive a solid offer.

There will be many other factors that are considered and if you are overweight, a smoker, received your diagnosis before the age of 28, or you are now older then you can expect a good number of rejections. You have to remember that the insurance company is going to weigh all the factors together before they make a decision on whether or not to offer you disability coverage. If you have more factors that hurt your chances other then just diabetes then it all adds up to a harder time of finding coverage.

You can still obtain disability coverage even if you have diabetes, especially if you have it under control. Start at the top and keep going down one step at a time until you get what you are after. Just don't expect to get an offer right out of the gates and be sure to take your first offer you do receive even if you keep looking because it may end up being the only offer you get. You can always cancel if you find better coverage down the road but at least in the meantime you will have peace of mind.

Nothing is more important than bring in an income. If you become disabled that ability will be gone and will leave you and your family struggling to make ends meet. For that reason it is vital that you have disability coverage. While having diabetes does mean that you will be subject to more than one provision with your disability insurance you can still get it and ensure that you and your family will be taken care of should the unthinkable happen and you are no longer able to work due to a disability.

Disability Insurance can Prove More Important than Life Insurance

  
  
  
Disability Insurance ratesMany times the bread winner of a family will view life insurance as an absolute necessity especially if they have children. Life insurance is great peace of mind to have so that they know the house will be paid for and the kids will be able to go to college should the unthinkable happen. But that same bread winner will give little thought to disability insurance and with the fact being that a worker is five times more likely to become disabled rather than die, this oversight could prove costly.

There is more life insurance sold in America then there is disability insurance but if you have a family that is dependent on your income then it really is a necessity. While a death may be more emotionally devastating, a disability can prove to be just as draining, if not more so, when it comes to a family's finances.

The biggest asset that anyone has is the ability to earn money. If you get disabled and can no longer work you will still have all of your bills to pay only you will have no income to pay them with. Additionally you may have to modify your home or vehicle to suit the needs of your disability and there may be the added cost of physical therapy or training for a new job to consider. The point is you just never know what a disability will bring you in the way of additional costs.

Fortunately there are many national firms that sell disability insurance and having this type of insurance can save you from ending up in the poor house. While there is no set price a good rule of thumb is to expect to pay between one and three percent of your annual income.

Just as with many types of insurance, disability insurance can vary greatly on coverages and benefits. Here are some differences:

  • Waiting Period: This is the time after a disability has occurred before benefits kick in. These can range from three months to two years depending on the provider and the price of the policy.
  • Taxes: If your employer pays for your plan any benefits received would be fully taxable. If you pay for the plan then any benefits received would be tax-free.
  • Benefits: Group plans though your work will cover up to 60 percent of your salary where an individual plan will cover up to 80 percent.
  • Time: Plans can be obtained that will be good for two years, five years, age 65, and more. The longer the plan the more expensive it will be.
  • Renewability: Some plans offer a non-cancelable and guaranteed renewal which means that you are guaranteed to be renewed at the same rate and that your policy cannot be canceled. If the policy is only non-cancelable then that means the provider cannot drop your coverage but they can increase your rates.
  • Disability Definition: The best disability definition to get is own-occupation. This will pay you your benefits if your disability keeps you from working at the job that you held before the disability occurred and will not penalize you if you are working part time in another area unrelated to your previous job.

Many people feel that they have no need to obtain disability insurance because they think that Social Security will take care of them if they become disabled. This is a common misconception that is grossly overestimated. In fact, Social Security benefits are very hard to obtain and even if you do obtain them the benefits are typically far less than that of a good disability insurance plan. Additionally, Social Security is only given if you are expected to be disabled for the rest of your life meaning there are no short-term disability benefits available with Social Security.

While there is also Workman's Comp that is also a possibility to obtain this again will pay out far less than a good disability insurance policy. However you should look into all possible routes of income production should you become disabled.

If you do decide that you want to look into obtaining disability insurance from a private provider you will need to look over the entire policy and you should do some comparative shopping. Here are some points to consider when shopping for disability insurance:

  • How is total disability defined?
  • What accidents and illness does the policy cover?
  • Will the policy cover partial or reoccurring disabilities?
  • Will the policy cover loss of limbs, loss of sight, loss of hearing, or loss of speech?
  • How long will you have to be disabled before your premiums are waived?
  • Can you add coverage at a later date without having to take another physical?
  • Will the policy adjust according to inflation?

Once you have satisfied your curiosity with these questions then choose the provider that you feel the most comfortable with.

Protecting your family and making sure that you can always provide them with enough money to live is of course your number one concern. Don't take chances with possibly getting a disability that can not only hinder you but your entire family as well. For your sake and that of your family, take some time, do your homework, and obtain the best disability insurance policy for your specific situation.

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