What Would You Do If You Were Hurt and Couldn’t Work?

by Michele Postler, Saturday, November 24, 2012

The Social Security Disability Insurance that you pay into every month may not be around if you are hurt and couldn’t work any longer. It is no longer dependable as your main source of income if you are hurt and unable to work. Recent news states that the amounts of insurance claims are larger than the amounts in the fund. In 1970, there were about 1.3 percent of working aged adults receiving some kind of disability benefit; and in 2011 there were 4.5 percent. There are more and more people that need this service and one of the reasons of this is that there are more people in the workforce, including women, who are entitled to benefits if needed. As well as more people in the workforce, the increase in disability claims is partly due to the baby boomer generation that are getting older and may be more prone to injury. Some politicians believe that the Social Security Disability Insurance should be on the forefront of spending cuts to reduce the deficit, which indicates that now more than ever it is important to get your own disability insurance coverage.

 

Most people are more inclined to buy life insurance before disability insurance, but it is more likely that a person may become disabled for at least a year than for them to become deceased. Which emphasizes that more people are either not entirely sure of the benefits or they are depending on the Social Security Disability Insurance. It is very important to read the fine print with social security disability there is an average of a five month waiting period. This could cripple the savings of a family if they were without income for five months.

 

Disability insurance can be intimidating but it doesn’t have to be. You can find disability insurance rates online and are able to customize a plan that is right for you. The following should be considered when customizing your plan:

 

  • How is the disability plan defined – some plans only cover for some types of injuries and they have their own definition of a person being unable to work. They sometimes state that they will not provide coverage if you are able to perform the duties of any job, for example working at a fast food chain. But if you are a foreman on a construction company the lost wage of that doesn’t even compare to working at a fast food chain. So you should look at the wording and buy a plan that states that you are unable to perform the tasks of your current occupation
  • When do the benefits begin – all companies have a waiting period; it could be 30 days up to 6 months. The less time to wait for the benefits the more money it will cost. But remember that the social security benefits have a waiting period of five months so it is best to get a plan that at least covers you in the meantime.
  • How long do the benefits last – almost all companies provide benefits until you are the age of 65. They could be shorter or longer but will expire at that age. Some companies give you a return of premium every 8 to 10 years if you do not make a claim in that time. But again you will have to pay a little more to have that option in your coverage.
  • How much do you need – when considering your disability plan make sure you realistically estimate the amount your family will need each month in order to pay the bills of the house and medical bills if you are disabled.

Disability insurance is an important part of planning and protecting for your family. Often it is harder on you and your family, financially, if you are hurt and can’t work. The internet has a wealth of information on disability and you can get disability insurance quotes easily online.