Many people have life insurance policies, however very few of them have long-term disability coverage. According to survey, workers are more likely to sustain a long-term disability. Disability Insurance  policy provides financial security in the event when a person becomes disabled and is no longer able to work.  As with any insurance, be sure to obtain disability insurance from a reputable company and seek help from a financial planner if necessary. It’s a good idea to get a benefit period that lasts until age 65, at which point Social Security payments  begin.

How You can  get disability insurance?

Your employer may offer disability insurance coverage at work. As an employee, you  can get this group coverage. If the employer pays the premium, you are suppose to  pay taxes on the benefits  received by you. You  can opt to buy an individual disability insurance policy.  When you pay the premiums for a disability policy, you receive benefits tax free.

Disability Defined

Disability may be defined as any physical or mental  illness or injury which prevents you from performing your regular or customary work. This may include elective surgery, illness or injury resulting from pregnancy, childbirth, or related conditions or inability to work due to a written report of authorized health officer.
A policy's definition of "disability" is also important. Some policies define that  you will be considered disabled if you cannot work in your own occupation. Some will pay only if you cannot work in any occupation. And a few policies allow you partial benefits if you have a reduction of income. There is variation in the definitions of disability, so read the policy carefully and ask questions for clarification from the consultant.

What Type of Coverage?

There are basically two types of disability insurance coverage available. Group long-term disability insurance and Individual Policies.  Group Policies.  are inexpensive when compared to individual policies.  You get what you paid for. Group policies tend to have strict definitions and pay in fewer actual claims scenarios. Individual policies  pay more money and  have rate guarantees to age 65.  It is not possible for corporations who  have the limited budget.  Corporations can provide their  employees with the best possible coverage in case of an accident or injury. If money is a large factor  then group LTD may be the route to go. One of the more common scenarios is a blend of the two. The Corporation can  purchase group LTD for all employees up to a certain level and supplement this plan with individual coverage for their key employees.