Disability insurance companies specialize in offering insurance policies that will provide consumer's a type of paycheck if an injury prevents them from continued employment. According to the Health Insurance Association of America, about 30 percent of Americans between the ages of 35 and 65 will suffer an injury lasting at least 90 days sometime during their career. Disability coverage can help guard against unmanageable debt that can make it otherwise difficult to recover financially. A person may think that they don't need to consider coverage if they have a company-issued policy. There are limits (a salary percentage or monthly maximums), however, and consumers may not be able to afford to pay the basic bills of the household. Many will still need a supplemental policy from a disability insurance company to help close the gap. Social Security benefits may be difficult to qualify for and unfortunately, many people will have to wait for a year with no hope of recovery plus end up receiving a limited maximum that may seriously impede personal lifestyle choices.
Be careful to choose coverage that is financially sound, in other words, choose a policy that will pay out claims no matter what. "I will be glad and rejoice in thy mercy: for thou hast considered my trouble; thou hast known my soul in adversities." (Psalm 31:7) Before shopping around for the best rates at disability insurance companies, check out their reliability through any of these three companies: AM Best, Standard & Poor's, or Moody's. Once a consumer has determined which disability insurance company seems to be the most reliable, compare rates for a non-cancelable policy (first choice), a guaranteed renewable policy (second), and a conditionally renewable policy (last). Rates and benefits are only locked in with the non-cancelable policy. The other policies allow rates to be raised or, with the third option, clients have even less control.
Finally, there are three types of disability. Compare rates for "own-occupation disability." This is desirable because a disability insurance company will guarantee payment for clients who cannot perform the principal duties of the job they currently have. A client will be able to assume other jobs but it will not undermine the terms set by the policy itself. All other policies will be less satisfactory in the long run with varying coverage and/or definitions of what "disabled" really means. The price of a policy obtained through disability insurance companies will probably be about 1-3 percent of a worker's overall salary and vary according to age, gender, health history, and occupation. Another factor affecting premiums is how long the elimination period is before payments begin. Plus, many companies will offer clients a choice of benefit periods from 2 years to the rest of a client's life so that as long as they live, that policy will be helping them overcome the disappointments they have had to endure as a result of becoming disabled.
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