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Plan Ahead: 3 Types of Disability Insurance to Help Protect Yourself

If you need disability insurance you may be a bit confused about exactly what you should buy or what your employer offers. The importance of getting the right type of disability insurance must never be underestimated.

It is what will help you to pay the medical bills and have peace of mind should you become disabled.

If you are struggling to decide what disability insurance is right for you or are wondering if your employer has given you sufficient coverage, a little guidance can go a long way. Read on because you are about to find out about the different types of disability insurance.

1. Long Term Disability Insurance

This type of insurance can be purchased in order to get monthly benefits should you become disabled. The benefit period can vary significantly.

It can last for two to ten years. In some cases, it can last up until you retire. The benefit that you get is often 60 percent of your gross salary every month.

This type of insurance is usually seen as the most cost-effective option and you can get it if you work for a company or are self-employed. When you are self-employed and looking for disability insurance, it is important to go with a reputable company such as WRS Insurance Solutions so that you are guided into making the right decisions.

2. Short Term Disability Insurance

This insurance will cover you for up to a year if you are injured and cannot work. It will usually payout at least 80 percent of income before taxes. It can do this for a very short period of time or a whole year.

This type of insurance is usually offered by an employer. In fact, it is often a requirement in many states that an employer provides this type of insurance to cover their employees.

If you become disabled you will not have to wait long for the payout from this insurance type since it is usually done in a few weeks.

3. Mortgage Disability Insurance Is One of the Important Types of Disability Insurance

When you become disabled and are unable to work you may not be able to make mortgage payments. This is where this type of insurance becomes necessary.

You can get this type of insurance from the lender or an insurance company. It is good if you don’t qualify for long-term disability or life insurance.

The last thing you need is to lose your home if you are disabled and cannot make regular mortgage payments. This type of insurance effectively prevents that.

The Right Coverage for You Is Out There

The types of disability insurance available vary. However, one thing is certain and that is the fact that they are invaluable should you have the unfortunate experience of becoming disabled for a short period or for a long time.

If you work for a company, ask about the details of your policy, and if you are self-employed be sure to do due diligence before selecting an insurance provider.

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