How Disability Insurance Is Beneficial To Have
Many of us are not very keen on disability insurance concept
. In fact, many believe that it's not important at all. They just think it's just an unnecessary expenditure and they will never need it. According to a report, over 80% of working people in the US don't avail the policy or are not covered by the policy adequately. This indicates people are very much unaware about the benefits of such insurance. Let me tell you disability insurance is very important, especially considering interests of common man. In the era of high inflation and snail-paced recovery from the global economic downturn, disability insurance helps one save on money at a time you need it most.
Disability insurance is pretty similar to life insurance, where you hand over the risks from yourself to someone else. Read on to know what
the benefits of disability insurance are:
Disability simply means you are not able to continue your job due to sickness or illness. And at such point of time, you would consult doctors or gods forbid get admitted to the hospital. You will have to shell out lot of money to recover soon. But in case of long term disability, say six months or so, costs of treatment can just take a toll on your budget. Sometimes one may need to shell out money, which h/she had kept for his/her future or some special occasions. If you have disability insurance policy, you shall receive a certain amount of salary so that your recovery is smooth and hassle free.
The policy, as aforesaid, covers a wide range of disabilities, which can be categorized as short-term disability benefits and long-term disability benefits. These benefits intend to facilitate individuals depending on their choices and needs. As the term suggests, short-term disability benefits mean financial assistance for a short-term disability. Similarly, long-term disability is for long-term disability.
Most of the employers provide their employees with insurance. But there are many companies, which don't provide this facility. The employees, in that case, can avail policy from open market. This lets one have plenty of choices and h/she can make deal according to his/her needs or budget.
There is also facility of high limit disability insurance, which means one can increase the volume of money to be claimed. This scheme is pretty good for high income earners. Under the policy, one can avail 60% of income regardless of the income level.
'Key term Disability Insurance' is also a kind of disability benefit but mainly aims at the employers. Such schemes provide financial assistance to the employers in case of permanent loss any employee due to disability. The money can be used for hiring a replacement inclusive of recruitment, training, startup, loss in revenue and unfunded salary continuation costs.
Premiums for disability policy aren't higher, which means can be afforded by everyone. And most importantly, most of the benefits are tax free regardless of what your tax bracket is. Great isn't it? So, you must have understood why disability insurance is important to all. After all it protects you and your assets.
by: bond
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