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what is long term disability insurance

Is Long-Term Disability Insurance Worth The Money?

why disability insurance cost is worth it

Is Long Term Disability Insurance Worth The Money?

The cost of a long-term disability insurance policy may seem expensive until you realize your odds of becoming disabled. 

What Is Long-Term Disability Insurance?

Private long-term disability insurance is a type of insurance policy you can purchase to replace some of your income if a disability leaves you unable to work.

Social Security Disability Insurance 

This is how Social Security Administration defines disability: “Disability” under Social Security is based on your inability to work.

We consider you disabled under Social Security rules if:

  • You cannot do work that you did before;
  • We decide that you cannot adjust to other work because of your medical condition(s); and
  • Your disability has lasted or is expected to last for at least one year or to result in death.

This is a strict definition of disability.

Social Security program rules assume that working families have access to other resources to provide support during periods of short-term disabilities, including workers’ compensation, insurance, savings, and investments.

No disability benefits are payable for partial disability or for short-term disability.

Becoming disabled is a topic that most people do not like to think about.

Sadly, the chance that you will become disabled probably is greater than you realize.

Studies show that a 20-year-old worker has a 1-in-4 chance of becoming disabled before reaching full retirement age.

These terms, definitions, and statistics are published by the Social Security Administration.

Long-Term Disability Insurance Cost

If private long-term disability insurance cost seems expensive then think how expensive it would be to live with a paycheck. 

Most people need a paycheck in order to financially survive. 

The cost of a private long-term disability insurance is based on your age, health, occupation, payout and waiting period. 

The payout is the amount you will receive each month.

The waiting period is an amount of time before you can receive your claim’s payout. 

Your Companies Long-Term Disability Insurance Program

If you are employed by a company that offers disability insurance then you should seriously consider signing up for their disability insurance. 

Disability insurance offered at major companies usually do not require any medical background.

If you pay for your disability insurance through your paycheck then any disability insurance claims will be taxed. 

Long-Term Disability Insurance Companies

Most disability insurance companies offer long-term disability insurance payouts that are equal to up to two-thirds of your income. 

You should always check the credit rating of the insurance company before you sign any insurance policy. 

Th A M Best website offers ratings on different insurance companies. 

Is Long-Term Disability Insurance Cost Worth The Money?

Long-term disability insurance cost is worth the money if;

You are unable to survive without your paycheck.

My medical journey has taught me that the cost of disability insurance is expensive but priceless.

These disability insurance resources provide you with additional disability benefit programs:

Disability Insurance, Life Insurance Differences

What Does Disability Insurance Cover?

What Is Long-Term Insurance?

Social Security Disability Insurance Approval Rate

 

You can also read stories about Disability Insurance at HypoGalBlog.com

You can read HypoGal’s Story with Disability Insurance at Amazon’s highly ranked business law book: HypoGal and Disability Benefits.

 

 

Resources:

http://www.ssa.gov/dibplan/dqualify4.htm

http://www.ssa.gov/pubs/EN-05-10029.pdf

 

My long-term disability insurance quote; “Disability insurance is expensive but priceless”.