No one wants to think about the day when they may become disabled and unable to work, but the cold, hard facts are that over 13% of the US population had some form of disability from 2008 to 2017. That’s over 4.2 million people.
An independent insurance agent can make sure that you are covered in disability insurance and can explain your options so that you’re prepared. You can see why having an independent insurance agent is one smart decision.
What Does Individual Long-Term Disability Insurance Cover?
Individual long-term disability will pay a percentage of your salary to aid in your monthly expenses while you are disabled or critically ill. This type of disability coverage lasts years and not months like short-term disability. Individual long-term disability will cover a portion of your income to handle everyday expenses while you are unable to work.
Normally, the benefits range from 40% to 70% of your monthly income. The benefits will keep on producing until you are able to go back to work or until the number of years stated in the policy expire.
Types of claims for individual long-term disability
Musculoskeletal injuries: These are one of the most common injury types in long-term disability claims. Musculoskeletal injuries are injuries of the soft tissue caused by impact or force.
Complications from pregnancy: This is another high contender in most claims made on long-term disability and frequently falls under short-term disability. But if complications continue, then long-term disability will come to the rescue.
Cancer, heart disease, or critical illnesses: Critical illness ranks in the top of long-term disability claims, most of which come from cancer and heart disease as contributing illnesses.
An injury that causes disability: This one is lower on the list than you may think. An actual injury other than a musculoskeletal injury is not one of the higher claims made like the three above. It is also worth mentioning that any injury that happens in the workplace or as a result of doing your job will not fall under disability insurance, but instead will fall under your employer's workers' compensation policy.
Who Needs Individual Long-Term Disability Insurance and Why?
If you are self-employed, or your employer doesn't offer group coverage, you'll need individual long-term disability coverage. Even if your employer offers coverage of some sort, it may not be enough.
Long-term disability insurance could mean the difference in being able to pay your bills or not, so It shouldn't be put off or brushed aside. The time is now, and a local independent insurance agent is just the person you should be talking to.
When Is the Best Time to Get Long-Term Disability Insurance?
If you get injured or ill without individual long-term disability insurance, it’s too late. It’s similar to life insurance. If you don’t have it in place beforehand, then your family and friends are out of luck.
Long-term disability insurance is no different, except if you don't have it, you will be alive to feel the pain. You will be the one out of luck and out of money. Your independent insurance agent will be able to make sure that doesn’t happen. They can show you the best long-term disability insurance options out there to fit within your budget.
What Is the Best Individual Long-Term Disability Plan?
You’ve got options when it comes to your individual long-term disability insurance. And if you work with a local independent insurance agent, you will have a variety of carriers and price points to choose from.
There really isn’t a best since there are a lot of good plans out there. An independent insurance agent will help you navigate the waters so you can find the best one for you.
How Long Will Individual Long-Term Disability Insurance Last?
Individual long-term disability insurance will last as long as your policy states or until you are able to return to work. In contrast to individual short-term disability, long-term disability will typically start anywhere from six months to one year and pay out for years.
Some long-term disability policies can last for the lifetime of the disability, but so will the premium. There are options with different lengths and different pricing. Some are better than others and all are things that an independent insurance agent can advise you in.
How Much Will Individual Long-Term Disability Cost?
It seems there is no walking away from a topic when money is involved. You always have to know how much something is going to cost. The cost of individual long-term disability depends on a number of factors just like most insurance policies.
Pricing is figured out by actuaries who run reports and determine how risky you are based on your age, health, and policy terms. They then figure out a reasonable amount to charge for your risk factors and their policy offerings.
If that all sounds too ivory tower for you, there are independent insurance agents who deal with the insurance companies and their actuaries so you don’t have to.
Is Individual Long-Term Disability Coverage State-Specific?
Each of the state insurance departments have to approve disability insurance offered for sale in that state. That said, most of the states follow the same guidelines from the National Association of Insurance Commissioners (NAIC).
To be sure, check any state specifics for long-term disability with your local independent insurance agent.
Can an Independent Insurance Agent Help?
An independent insurance agent can help you save money by finding you the best price. But so much more than that, they are knowledgeable. They eat, sleep, and breathe insurance and will know all the right insurance companies to talk to.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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Elflein, John. (February 21st, 2019). https://www.statista.com/statistics/792697/disability-in-the-us-population-share/