You rely on your income to fund every aspect of your life. If you are like one of the millions of Americans who unexpectedly becomes unable to work each year due to illness or injury, the last thing you want to worry about is how to continue paying your bills without an income. A common misconception about
disability income insurance is that its sole purpose is to cover against catastrophic events resulting from accidents. In fact, illnesses like cancer, depression, and multiple sclerosis far more often impact your ability to work and support yourself and your family. Individual disability income insurance is designed to protect your income if you cannot work due to illness or injury. Do I need short term or long term disability insurance?The biggest difference between short term and long term disability insurance is the period of time you’ll receive benefits if you’re unable to work. This period is called the benefit period. As the name indicates, short term disability insurance is intended to cover you for a short period of time following an illness or injury that keeps you out of work. While policies vary, short term disability insurance typically covers you for a term somewhere between 13-26 weeks and can replace anywhere from 40-70% of your income during that benefit period. On the other hand, long term disability is intended to provide benefits for a longer period, and benefit periods for long term disability insurance are usually stated in years: 5, 10, 20, or even until you reach retirement age, depending on your plan.
Buying your own individual disability insuranceIndividual vs. supplemental disability income insuranceIndividual disability insurance can be ideal for anyone who doesn’t receive disability insurance through work. It’s also an option for high earners looking for extra coverage. Not only can you buy this policy on your own, it also stays with you even if you change jobs. If you want more protection, you may want to add extra coverage on top of your long term or individual disability plan. Supplemental disability insurance can be a great add-on for employees and individuals who want to protect a greater percentage of their income, bonuses or commissions. You may even be able to get a policy through your work. Factors that affect costThere are several factors will impact how much you pay. Hazardous occupations, such as working with heavy equipment, might pay more than someone who sits at a desk all day. Your health also affects cost, as people with a history of disabling conditions such as back injuries, arthritis, and asthma could potentially pay higher premiums. Other factors include the elimination period, or the amount of time you must be disabled before a benefit is payable, and the benefit period, or the amount of time an insurance company will pay for a benefit. Learn more about cost with our disability income insurance quote tool. How much disability insurance do you need?Disability insurance can help you fill in the gap between insurance you may get from work. To answer the question of how much insurance you need, start by estimating your current monthly living expenses, including:
Other factors to consider:
Individual disability insurance featuresWhen shopping for a plan, ask about what features may be right for you. For example, many Guardian plans offer some of the following features:
Plus, several optional disability plan riders are available:
Other types of individual disability insurance
States that offer short-term disability insurance Why you need disability income protection before you’re sick or injured
Keep student loan payments on trackYou can protect from $250 to $2,500 per month in student loan payments.
Download the PDF to learn more about this option. Dealing with the unexpectedUnexpected medical problems can get in the way of working and earning an income. See how these families relied on their financial representatives and individual disability income insurance from Guardian to make sure they had the coverage they need to continue living their lives. Protecting what mattersForward-looking financial planning helped Dr. Tullos and his family focus on the things that really matter. There when you need usLearn how disability income insurance helped Dr. Kardani secure his family’s financial future and allowed him to focus on maintaining his own health Are you an employee? Employees, contact your employer. Are you an employer? Employers, talk to your broker. Are you a broker? Offer your clients a disability insurance program. FAQsHow long do I need to have individual disability insurance policy before a claim is paid?As with all private insurance, your policy must be in effect – meaning set up and paid – and the elimination period (time between a disability and payment) must be met before it will pay on a claim.. How much income is protected by individual disability insurance?A short term disability policy typically replaces 40-70% of base income and lasts for 13-26 weeks. A long term disability policy replaces 40-60% of base income; plans vary but typically the policy can last from five years to retirement age. Can you keep your disability insurance if you change jobs?Yes, it stays with you even if you change jobs. What is an individual disability policy?Individual Disability Insurance is designed to support the needs of executives and professionals with high salaries or uninsured earnings. However, anyone with a gap in coverage due to Long Term Disability benefit maximums or uninsured earnings may be eligible for IDI coverage.
What are the benefits of an individual disability income policy?Disability income insurance helps protect people from financial losses if an accident or illness renders them incapable of working and receiving regular income. DI insurance is available through employers, Social Security, or insurance companies and comes in short-term and long-term disability coverage.
Which rider is not commonly found in a disability income policy?Which rider is NOT commonly found in a disability income policy? A long-term care rider is available for life insurance policies, but not for disability income policies.
Which clause defines total disability as unable?Which clause defines total disability as being unable to perform the major duties of the insured's regular occupation? Own occupation clause.
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