When it comes to protecting yourself with insurance, disability insurance is not often thought of as something you need.
However, what happens when you can’t work for months at a time or need to take time off because of an illness or injury?
The common misconception about disability insurance is that you have to be physically disabled in order to file a claim and receive benefits.
In reality, a disability from an illness or injury is more common and can cause significant financial hardship.
The 2 Types of Disability Insurance
Short Term Disability
Short-term disability insurance can be used for a few weeks or a few months until you get back on your feet. It is meant to be temporary and to help you in the case of a temporary illness or injury. It can be used to relieve the stress of paying for day to day or monthly bills while you are not working because of your disability
Long Term Disability
Long-term disability insurance can be used for 3 months to 2 years. It is meant to sustain your lifestyle while you receive treatment for an illness or adjust to your life after an injury. Although long-term disability insurance can be more expensive monthly than short-term disability, it can give you peace of mind when you need it the most.
How to purchase disability insurance
To purchase disability insurance, you first need to complete the application and underwriting process. Underwriters look into your job and industry to assess risk and the likelihood of filing a claim. You can work with a broker who can help you with the underwriting process; they often have access to personal contacts at insurance companies and have access to the best rates.