You enjoy your job and it pays well, but have you considered what would happen if you become ill or injured?
Will your health insurance cover lost wages in addition to medical bills? That’s where disability insurance comes in. Depending on the nature of your illness or injury, it could affect you for months or even years.
Own occupation and any occupation are the two types of disability insurance. Own occupation means if the policy will help cover your lost wages if you can’t do your current job. An any-occupation policy will cover you if you cannot do any kind of work. If you can work at a job other than your own, an any-occupation policy won’t pay out.
Some companies offer disability insurance but be sure to read the fine print. You may need your own plan on top of the one your employer offers.
Social Security does offer disability payments but only if you’re expected to be out of work for more than a year.
Short- and long-term plans
Short-term typically covers a period of less than six months—this is best for short illnesses or injuries that can heal quickly. The median payout for a short-term plan is 60% of your salary.
Long-term disability insurance can help in more serious case such as loss of a limb. Long-term insurance lasts the length of disability or until you retire.
Calculate your insurance needs
Subtract from your income any reductions in job-related spending, like gas or lunch. Then subtract any additional income you have from any other sources. That’s your magic number.
The Bureau of Labor Statistics shows only 33% of private industry employees offer long-term insurance and 39% offer short-term insurance. Personal disability insurance could help keep you financially sound after an illness or injury.
Your Insurance Gal Agency
Open 9am to 5pm Monday – Friday
Evening and Weekends by appointment
113 NE 92nd Ave,
Vancouver, WA 98664