Few people think about it, but it’s a fact: 30% of Americans will suffer a long-term disability of 90 days or more before they reach the age of 65. What can you do about it? If you have been paying Social Security taxes, are unable to work for a year or more, and have a qualifying disability, it’s possible you might qualify for Social Security Disability benefits, though on average only slightly more than one third of applicants are successful. Yet, you can be plan for such a catastrophe.
The first type of disability insurance generally offered is short term. This covers situations from two weeks up to about two years. Many employers offer this type of benefit as part of their package, and you would be wise to take it. Long-term disability protection pays benefits lasting for up to five years or when the individual reaches 65 years of age and comprises two types. The first is the non-cancelable contract, which means that the insurance cannot be canceled for any policyholder provided the premiums are paid. This is more expensive than the guaranteed-renewable type, in which premiums can be raised, though only for a given class of policyholders. Generally speaking, the benefits of such policies pay out between 50-70% of the insured’s wages. The cost of disability protection is not cheap, but can be invaluable for wage earners in the prime of their lives.
The first type of disability insurance generally offered is short term. This covers situations from two weeks up to about two years. Many employers offer this type of benefit as part of their package, and you would be wise to take it. Long-term disability protection pays benefits lasting for up to five years or when the individual reaches 65 years of age and comprises two types. The first is the non-cancelable contract, which means that the insurance cannot be canceled for any policyholder provided the premiums are paid. This is more expensive than the guaranteed-renewable type, in which premiums can be raised, though only for a given class of policyholders. Generally speaking, the benefits of such policies pay out between 50-70% of the insured’s wages. The cost of disability protection is not cheap, but can be invaluable for wage earners in the prime of their lives.
No comments:
Post a Comment