Insurance is a widely accepted term throughout the world. You must have heard of car insurance, business insurance, building insurance, life insurance, motorcycle insurance, etc. actually, today people even insure specific parts of the body, parts such as the eyes, boobs, butt, voice etc can separately be insured. What this means therefore is that should anything ever happen to the insured body part, then the insurance service provider will compensate in cash. The other type of insurance that is really gaining in popularity today is the Disability insurance.
As the name would suggest, disability insurance takes care of all your financial needs should you ever be rendered disable as a result of an injury or illness. According to recently released statistics, one in every 3 people will be faced with disability by the age of 35, which can last for up to 3 months before reaching the age of 65. Further, statistics indicate that 1 out of every 10 people risk getting permanent disability. Disability insurance will without a shadow of a doubt solve a huge part of your financial burden should you be rendered disable.
Disability insurance is generally available in two types… as a short term and long term insurance. Long-term disability insurance, as the name would suggest, covers a period of over 6 months until when you will retire. Keep in mind that there is no insurance company today that will give you 100% coverage of your income should you not be able to resume work because of a disability.
The short term disability insurance on the other hand will give coverage for up to 60% of your actual income while the long-term one will give coverage for up to 80% of your total income on a tax-free basis. It goes without saying that because of the erratic nature of the life that we live in today, it is important to get as much coverage as you possibly can.
There is disability insurance package that is given by the government. The other alternative would be to sign up for the same as provided by most employers. Be advised though that just like all other employer benefits, upon the termination of your services with your employer, the disability insurance coverage will also be terminated.
It is therefore very important to look into basic factors while selecting a disability insurance policy. Such basic factors such as renewability of the contract and total disability have to be considered seriously and carefully. You should go with an insurance policy that has a clause stating clearly and categorically that the insurance service provider cannot terminate or raise your premiums in an effort to frustrate you to cancel the deal altogether. You are better off looking for guaranteed renewable or non-cancelable policies.
Look at a review of Aetna Long Term Disability Insurance and see if it’s right choice for you.