Is Standard Disability Insurance Enough For Your Needs?

What is standard disability insurance? Who needs it? Will standard disability insurance meet your needs? Life can change in seconds, how would you continue paying your expenses if you suddenly become unable to work? Standard disability insurance can be enough to assist your family in keeping up with household expenses.

Types of Disability Insurance

There are two main types of disability insurance. There are distinct differences between the two. Some are obvious, some not so obvious. Each has standard provisions. Get a budget together to see how much insurance you can afford. If all you can afford in your budget is the standard disability insurance policy, then that is what you should purchase. For specific questions concerning standard disability insurance, contact the insurance agent who carries the policy you are interested in.

    * Short-term disability insurance, STD, covers just what the name says. Short-term disability. This disability insurance has at least a two week waiting period and usually has a benefit period of 13-26 weeks. Short-term disability insurance will also cover up to 100% of your income.
    * Long-term disability insurance, LDI, also covers what its name suggests, long-term disability. There is a longer waiting period with LDI vs. STD, usually 30-180 days. The benefit period is also longer with LDI. The typical benefit span is 5 years, but can be extended up to retirement age. LDI pays up to 70% of your pre-tax income. There are also 3 types of LDI.
    * Own Occupation covers your income from the job you were performing when you became disabled, even if you have another type of job.
    * Regular Occupation covers your income in the job you have at the time of disability. You cannot be forced to take another position, and you get 100% of your income. If it is your choice to work in another position, your benefit will be adjusted accordingly.
    * Any Occupation only comes to play when you cannot work at any job at all. This type is very strict and doesn't typically come into play until you have been on Regular Occupational disability for at least 5 years.

Every Insurance Company is Different

To determine which standard disability insurance policy will best meet your needs, research every policy you come across. You can ask friends, family, insurance agents, and search the internet. Find all the information that is available for your state and personal situation. Figure your family income. How much would your family need if you could no longer work? Look at your lifestyle. Do you participate in activities that are potential dangerous? Realistically, driving down the road in your car is potentially dangerous.

These are all things you should consider while thinking about standard disability insurance. Make sure you know the draw backs and benefits. It really is worth it, in the long run, to carry your own disability insurance policy, if your employer carries this coverage? Can you find standard disability insurance cheaper or with better terms on your own? Face it, no one wants to be unable to work due to illness or injury, but a lot of people will face that reality every day. A lot are unprepared and will end up losing more than their ability to earn an income.

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