Disability income insurance or income protection insurance will cover an individual with a replacement income should he/she becomes disabled and unable to work said an attorney from Springer Ayeni. While such a coverage will provide reasonable income replacement, it also maintains an incentive for the individual to return to work. There are many factors to consider when taking out such a coverage. This article provides information on disability income benefits.
You may think that you don’t require an income protection cover, but the statistics say otherwise. In fact, most people are not aware of the statistics on the likelihood of an individual becoming disabled during his or her lifetime. The Social Security Administration reveals that more than one in four people among the 20-year old’s become disabled before they reach retirement age. Also, there were more than 21.4 million people (aged between 16 to 64 years) in the United States having some kind of a disability that prevented or limited them from working. This was revealed in the 2010 Census. That is why you should get serious about the disability income insurance right now.
Income protection covers are available as long-term and short-term policies. You can choose the best policy that meets your personal requirements. The NAIC or National Association of Insurance Commissioners states that an income protection policy will cover at least 60% of the income that the individual was earning prior to the disability. The benefits and premiums of disability insurance covers will vary depending on many factors such as the gender, age, physical condition, medical history, job duties, and the income of the individual. The benefit levels and coverage are affected by many other important features such as the benefit period, total disability, elimination period, and additional income sources.
The elimination period of an income protection insurance is almost similar to the deductible of a health insurance policy. During this initial period of time, the individual won’t be qualified to receive any benefits even if he or she is prevented from working due to a disability. The benefit period is the maximum period the benefits would be paid to the individual for a single period of disability. This period can depend on the requirements of the customer. In fact, it can be a short-term such as 13 weeks or a long-term such as the retirement age of the individual.
The above read offers information on disability income benefits coverage.