
Disability Insurance in Ann Arbor
Your most valuable asset isn’t your house, car or retirement account; it’s your ability to earn a living. Disability insurance can be essential for offering financial support if you can’t work due to an illness or injury.
What Is Disability Insurance?
Disability insurance provides financial help for individuals who face disability or illness. When someone becomes unable to work, this insurance can help replace a portion of their lost income—often a percentage of their pre-disability earnings—during the time when work is impossible.
Disability insurance policies can differ significantly, influenced by factors such as the waiting period (referred to as the elimination period), the percentage of pre-disability income replaced and the duration of benefits. For individuals who rely on their income to meet financial obligations and sustain their lifestyle, disability insurance is a vital safeguard. It offers peace of mind and helps ensure financial stability during challenging times when work is not feasible due to a disability.
Why Do You Need Disability Insurance?
The following are reasons to consider disability insurance:
- Risk of disability—While it might seem unlikely, the risk of missing work due to an injury or illness is real. Even healthy individuals can face unexpected health challenges.
- Common causes—Rather than just considering worst-case scenarios (like severe accidents), remember that back injuries, cancer, heart attacks, diabetes and other illnesses are more common causes of disability. Although, it’s important to understand any plan exceptions, which can vary between policies.
- Financial protection—Disability insurance helps ensure that you continue to receive a portion of your income during a prolonged period of disability. Without it, you might struggle to cover essential expenses.
What Are the Types of Disability Insurance?
The following are the two main types of disability insurance:
- Short-term disability insurance can offer temporary income replacement for individuals who cannot work due to illness, injury or childbirth. Typically, this coverage lasts for a brief period, ranging from a few weeks to several months.
- Long-term disability insurance serves as a more extensive financial safety net, offering protection for an extended period when an individual cannot work due to a severe illness, injury or disability. This type of coverage is crucial for those facing prolonged recovery times or permanent disabilities that may impact their ability to earn an income over an extended period.
Where to Get Disability Insurance
Contact Active Insurance Agency to assess your needs, explore options and make an informed decision to protect your future.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.
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