Your comprehensive guide to Disability Insurance

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Disability insurance is a crucial component of financial planning, yet many people have questions about how it works and whether it's right for them. If you're considering disability insurance but need more information, here are answers to some frequently asked questions:

1. What is disability insurance?

Disability insurance, also known as income protection insurance, is a type of insurance that provides financial benefits to replace a portion of your income if you become unable to work due to a disabling illness or injury.

2. How does disability insurance work?

When you purchase a disability insurance policy, you pay regular premiums to the insurance company. If you become disabled and are unable to work, the insurance company will pay you a portion of your pre-disability income, usually a percentage ranging from 50% to 70%, up to a maximum benefit amount specified in the policy.

3. What types of disabilities are covered by disability insurance?

Disability insurance typically covers both short-term and long-term disabilities resulting from illnesses, injuries, or accidents. Common covered disabilities include musculoskeletal disorders, cancer, heart disease, mental health conditions, and injuries from accidents.

4. How much disability insurance coverage do I need?

The amount of disability insurance coverage you need depends on various factors, including your income, monthly expenses, savings, and financial obligations. A general rule of thumb is to aim for coverage that replaces 60% to 70% of your pre-disability income.

5. What is the difference between short-term and long-term disability insurance?

Short-term disability insurance provides benefits for a limited period, typically ranging from a few months to one year, after a waiting period of a few days to a few weeks. Long-term disability insurance provides benefits for a more extended period, often until retirement age if you remain disabled.

6. Can I purchase disability insurance if I'm self-employed?

Yes, self-employed individuals can purchase disability insurance to protect their income in the event of a disabling illness or injury. Many insurance companies offer disability insurance policies tailored to the needs of self-employed individuals and business owners.

In conclusion, disability insurance is an essential component of financial planning, providing income protection and financial security in the event of a disabling illness or injury. By understanding the basics of disability insurance and considering your specific circumstances and needs, you can make informed decisions to safeguard your financial future. 

How do I purchase disability insurance?

Get in touch with us and one of our experts will assess your coverage needs, compare policies, and navigate the application process.