The Benefits of Disability Insurance 

Disability insurance replaces your income if you have met a mishap and can no longer work due to physical or mental disability. If you think disability is rare, you might need to rethink it because it is widespread. Accidents are the reason behind disability, and a long-term illness may end up disabled too. To prepare yourself for this, you must get disability insurance. There is disability insurance provided by the employers and disability insurance you buy from companies that offer disability insurance. Keep reading to find out the benefit of disability insurance.

A disability insurance plan helps pay for your life if you can no longer work for your health conditions. It helps you get a mortgage, student loan, auto loan, etc. 

There are two types of disability insurance, the short-term disability benefit or STD and the long-term disability benefit or LTD. 

Short-term disability insurance benefits someone who can not make it to work for a short period, like six months or even a year or two. STD will replace the income of the disabled person by 50% to 60%. It is for people who might have met with an accident and can not go to work as they need time to recover, cancer patients undergoing treatments, women in pregnancy, etc. 

Long-term disability insurance is the people who can no longer work or enjoy any pleasure in their life because of their disability. LTD will provide people going through such conditions for five years or up to retirement age. Depending on your chosen plan, you can also continue to get the benefits after retirement. It provides you with 60% to 80% of your income. This insurance includes a cost of living adjustment, accidental death dismemberment, social insurance supplement, residual disability riders, and five to sixty-seven years of own occupation. 

You can get disability insurance from your employer, but they primarily provide short-term disability insurance. In this case, you don’t have to pay the premium. Instead, your employer will pay it for you. While signing for disability insurance, ask them if you can continue the same policy if you switch jobs. 

If you get individual disability insurance, you can continue with the same policy even if you are changing jobs. Individual insurance is better as you can choose the nature of the insurance according to your preference. 

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