Most of us think of death or the most negative things to happen when we start thinking of having insurance. We sometimes limit ourselves into thinking that insurance is for losing things, death, home, and medical purposes. But the surprising thing is that most of us neglect to consider what will happen if we become disabled.
The probability that we will become disabled is even higher compared to the probability that a house in normal conditions will be brought down by the fire. The moment you become very old, get into an accident, or when your body starts to act weird, the possibility that you will be disabled becomes more likely.
Because of this, when you start to consider getting insurance, it should not only be a life insurance or insurance for the things that are valuable to you. You should also start considering getting a disability insurance. In this way, you won’t become a burden to your loved ones when you can no longer earn money for your own.
Short-Term Disability Insurance
Immediately a week after you have become disabled, if you have the short-term disability insurance, you will be receiving money from then on. The problem with this type of disability insurance is the fact that it only covers your salary for roughly 6 months.
If your disability becomes permanent, how will you be able to cope with the succeeding days? So, if you have the capability, you should also apply for long-term disability insurance.
Long-Term Disability Insurance
The long-term disability insurance will provide you money starting from the 6th month that you have become disabled until you turn 65. From then on, you won’t have to worry about anything since you will be getting money from your insurance company.
However, you will only be compensated from 60 to 70 percent of your current earnings. So if you are having a hard time with the money you are earning now, you will most likely be in more trouble budgeting only 60 to 70 percent of that. But this option will always be better than not earning anything at all. And it will give you compensation until your 65. It is already a great bargain if you really get to use your disability insurance.
It is advised that you get both long-term and short-term insurance since they specifically do not cover conflicting dates. It will be better for you if you really get to use this insurance.
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