Disability Insurance Information
Disability insurance is designed to replace a portion of the insured person’s income if an illness or accident prevents them from working. This crucial financial protection can help cover everyday expenses.
The team at Active Insurance Agency can help you find disability insurance to help meet your potential financial needs. Contact us today to find out more about this essential insurance coverage.
What’s Disability Insurance?
There are two main types of disability coverage:
· Long-term disability insurance helps provide income replacement for an extended period if you aren’t able to work. Depending on the policy, there may be a waiting period that ranges from a few weeks to several months. Maximum benefit periods may also apply, ranging from a few years to lifelong benefits.
· Short-term disability insurance helps provide income replacement for a shorter time period. A typical short-term disability policy has a waiting period of zero to 14 days with a maximum benefit period of up to two years.
Your agent can help you review your disability insurance options, including how various policies work if you need to make a claim. They can also help you understand how much disability insurance you may need to help provide meaningful coverage.
What Does Disability Insurance Cover?
Disability insurance helps provide income replacement according to the policy’s terms. You can use disability benefits for any reason, including to cover regular bills, pay for medical expenses and medications or provide additional financial support to your household.
Disability insurance coverage varies significantly regarding the following:
· Waiting periods
· Benefit period length
· Definition of disability
· Benefit amount
Your agent can help you understand any optional features and available endorsements, such as cost of living adjustment riders, partial disabilities benefit riders and residual benefits.
How Does Disability Insurance Work?
Disability insurance is a contract with an insurance company. In exchange for premium payments, the company provides income replacement at the rate stated in the policy’s declarations for covered illnesses and injuries.
Depending on the insurer’s rules, you may need to undergo a verification process to receive benefits if you are injured or become ill.
Is Social Security Disability Coverage Enough?
While you may already have access to Social Security disability insurance benefits designed to assist those with a condition meeting the Social Security Administration’s definition of a disability, these benefits can take months to go into effect.
Processing time for Social Security disability insurance claims varies depending on the type of disability and any necessary examinations and requested medical evidence. According to the Social Security Administration, an initial decision may take three to six months.
Contact Active Insurance Agency in Brighton, Michigan, to learn more about your disability insurance options and get a quote.