Cost of Disability Insurance
Health and accident coverage, also known as disability coverage, is a type of insurance that will pay a certain percent of an employee's wages or salary if the individual cannot work due to disability. Most often this type of claim is made due to long term illness or injury due to accident. The cost of disability insurance, like every type of insurance policy, is going to vary depending on different factors. On average, your disability coverage will cost you between one and three percent of your yearly income.
You should definitely compare rates and policies before deciding on a policy. For example, just because the cost of disability insurance from a certain company is the cheapest, it doesn't mean it's the best choice for you. In many cases the cheapest insurance policies are restrictive when it comes to both payouts and eligibility. Look for policies that have income percentage payouts, which usually range between 45 and 60 percent. The waiting period for collecting your benefits should be 90 days or less. Another thing to consider is whether or not you can work at a job that you are able to do despite your disability. Some policies are restrictive when it comes to this issue.
Many experts believe the best kind of disability insurance is a policy where the worker can make an income while still receiving benefits. The problem is that many insurance companies do not readily promote this type of policy and will try to sell you another type of policy first. Another type of policy will only pay a percentage of income lost if the worker considers working in their job field in the future. Then there are disability insurance policies that actually require the disabled individual to look for jobs, regardless of what they are, how much they pay or whether or not they have benefits.
Regardless of the cost of disability insurance, it is wise to have it because if you do become ill or injured and cannot work by then it is too late to get coverage. Group insurance plans such as those provided by your employer may cover short term disability and emergency treatment, but there are not very many that offer long term disability benefits. If you find yourself in a situation where you are disabled and cannot work, the stress of worrying about living expenses can be overwhelming especially when combined with the stress of your medical condition. Disability insurance can take care of this problem and allow you to focus on your health and well-being.
You can check on the cost of disability insurance by contacting an insurance broker in your area. They can give you quotes and explain different types of policies to you. Or, you can begin your search online. There are websites where you can get free quotes on all kinds of insurance policies including disability insurance. These are just estimates, and you won't know the exact cost of disability insurance until you submit an official application and it goes through the underwriting process. As previously mentioned, the cost depends on the insurance company and the type of policy you select.