Considering the future can raise many issues. One of which is personal term life coverage. However, this is not the only issue that needs to be considered. Beyond the risk of simply losing your life, potential disabilities should be considered as well. Statistics show that, on average, a disabling accident occurs once every second. These are so common, that nearly 18.5% of Americans are currently living with a disability.
Disability insurance, unlike whole life coverage, does not focus upon the loss of life. It deals with the loss of the ability to continue your current life. This form of insurance guards against the possibility that you will become injured and prevented from working. This does not only include physical disabilities, but potential mental illness as well. This will help alleviate the worries that go with a disability. For example paying bills, saving for retirement or making monthly rent payments. These concerns can all be resolved with disability insurance.
There are a number of social programs to assist with disabilities. Just a few are social security programs and workers’ compensation. These will provide an absolute minimum coverage for you and your family following a disabling accident. However, they are not all inclusive. Another issue which has been reported is the time it takes to receive benefits. It is not uncommon to wait 6 to 12 months for benefits from Workers’ compensation. These will assist you, but when you are injured you need assistance at that moment.
This is why disability insurance is such a good thing to have. There are two types of disability insurance, short-term and long-term.
- The short-term plan will provide a monthly benefit based upon your monthly income. This period can be anywhere from 3 to 24 months long. Due to most people retiring around 65 years of age, coverage will end at age 67.
- The long-term plans will cover a time period of 2 to ten years. This may be right for you if you are the only provider in your home. Typically, these plans also allow for a higher portion of your current income to determine the monthly benefit. Similar to the short term plan, most coverage will end at age 67. There are a few plans which will allow you to continue until age 75, but the premiums are much higher.
Personal term life coverage is a wonderful option to support your family following your passing. However, not all tragedies result in loss of life. For this reason, it is advisable to research disability insurance and add it to your existing whole life coverage plan. If you have questions regarding disability insurance, let Blue Sky Coverage help you find a policy that suitable for you and your family. Call us today to get an insurance quote.