According to the Centers for Disease Control and Prevention, In the United States alone, more than 600,000 citizens die of heart disease on an annual
Types of Disability Insurance Plans
When looking at the insurance market, you will find various types of disability insurance, so it may become confusing what you should get to ensure you and your income will be protected. Depending on the level of protection you need, you can get two basic disability insurance plans: short-term disability insurance and long-term disability insurance. This article will cover some of the main aspects of each.
- Short-term disability insurance pays out monthly benefits when you cannot work for a short period, usually up to a year. An employer usually offers this disability insurance plan as group disability insurance. However, you can also get it as individual disability insurance.
- Long-term disability insurance is a type of disability insurance that pays out monthly benefits if you cannot work for a more extended period. It can be split into own-occupation disability insurance or any occupation disability insurance.
Short-term disability insurance
Group disability insurance plans are usually provided by the employer and are equal for all employees, regardless of their health state and lifestyle. They are tied to your employment, so you lose the disability insurance plan when you leave work. The benefits you may be entitled to change every year as well. Group insurance plans are a good option if you consider being at low risk of a potential disability. However, if you have a higher risk of experiencing disability, getting an additional layer of protection through individual disability insurance plans would be a good idea.
Individual disability insurance plans
Since you’re individually “appraised,” the individual plan offers better benefits because they are planned according to your needs. You can decide to purchase an individual disability plan as a supplement to a group plan or provide coverage if a group insurance plan is unavailable.
Long-term disability insurance
The rules aren’t so different for individual and group plans in long-term disability insurance plans. The same or very similar rules apply for group and individual plans, as both require payments to be made for a longer period. There are two main types of long-term disability insurance plans: own-occupation disability insurance plans and any-occupation disability insurance plans.
Any-occupation disability insurance plans
When you have an any-occupation disability insurance plan, you are entitled to receive benefits if you cannot work any job you’re suited for because of illness or injury. The process to prove that you’re unable to work any job is more difficult, but this type of policy is also cheaper.
Own-occupation disability insurance
An own-occupation disability insurance policy is more expensive. You will be entitled to receive benefits if your disability prevents you from working your own occupation only. It will pay out benefits even if you can work another job.
Each of the basic disability insurance plans is tailored to meet the specific needs of an individual. The type of disability insurance plan that is best for you ultimately depends on your lifestyle, health, and personal and financial needs.
The more protection you get, the higher the price of the plan will be, so it’s important to work with an experienced agent and a reliable company. Doing this will allow you to get a disability plan with your best interest in mind and protect you and your income at all times.
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