There are no doubts about it - you HAVE to have insurance. Law requires homeowners insurance and car insurance in order to retain the property associated with each. Insurance companies know you are required to utilize their services, and therefore, they charge a pretty penny for their product. So, what is a person to do if they are disabled and can no longer pay the premiums required by the insurance companies? Many people who face this situation are left hopeless, but can prevent this scenario with disability insurance.
Social Security Factors
Most people in the United States are of the incorrect belief that, in the event they become injured, Social Security benefits will care for them. The problem is that gaining qualifying to receive Social Security coverage can be next to impossible. And even if you DO qualify, the benefits can take much longer to launch than expected. If you are to qualify for Social Security benefits, you will be required to provide proof that you are unable to perform any profession. If you can no longer work heavy construction but you can still push a pencil at minimum wage - it's very unlikely you will get access to Social Security benefits.
The Social Security Administration or SSA requires each of the below criteria to be met in full before granting disability benefits.
1. He/She has in incapable of engaging in a significant gainful activity (SGA).
2. He/She is incapable as a result of one or more medically verified physical or mental impairment.
3. He/She has been incapable or is expected to remain incapable for a continued period of at least one year or the incapacity is expected to, or will result, in death.
To meet requirements, applicants are required to have worked twenty out of the prior forty quarters preceding the time of the disability. Investments and paid sick time are not considered gainful income. Conversely, if you file for disability and currently earn greater than 860 dollars per month (as of 2006) you will likely be denied claim. Should you be approved for coverage, the maximum pay out for a thirty year old adult, who previously earned 70,000 dollars per year, is a mere 1,600 dollars per month (in most cases, not even enough to cover a mortgage payment).
Protect Yourself and Your Family
You should take time to closely examine your emergency funds and liquid assets in order to determine your position in the event of a disability. Would $1,600 per month in Social Security benefits be enough to sustain your family's needs? Very likely, the answer is no. In 2004 the average monthly income per household was 3,700 dollars. According to this data, supplemental income would be required for most families should the primary provider become disabled.
Take some time to review your employer's benefits package. Many employers offer some type of disability coverage, be it 'short-term' (ninety days or less) or 'long-term' (greater than ninety days). Any coverage of this type should factor into your process of preparing for an emergency.
After taking into account the risk management that you already have put into place, you can make an informed judgment as whether or not you need additional coverage. If you determine your current provisions will not be enough to support you and your family, you should consider purchasing additional disability insurance. Because premiums and rates increase with age, you will probably need to make an immediate purchase while you are disease and injury free.
Here are a few factors to consider:
How much disability coverage will I need?
You should ensure your coverage would maintain your current standards of living, meanwhile taking into account the money you will save on a commute, eating out, etc.
"Elimination period"?
Simply put, it's the quantity of time you will wait for your benefits to start up. The classic elimination period for the majority of policies is ninety days, which means you should encompass your own funds for the initial ninety days of disability. You should be certain to arm yourself with this knowledge before making any insurance decisions.
For what duration will a single policy pay?
You determine the length of time your policy will pay based on the policy you choose. Most people choose a policy that will cover them to retirement age (about 65 years of age), at which point they can take advantage of retirement benefits. If you have no retirement benefits, you may need to consider a different policy.
What do "own occupation" and "any occupation" mean?
Some policies specify your disability as the inability to perform within your current or "own" occupation. This means you will still get the benefit even though you may be able to work in a different field. If you select a policy that specifies the inability to perform in "any" occupation, you will have to provide evidence you are incapable of performing "any" job before the policy will pay out.
In 2004 only about 27 percent of income earners in the United States allocated some part of their total household income to disability insurance. This can be seen in most expense budget spreadsheet, at the same time greater than 20 out of 168 million people in the working population reported some type of disability. The instance of disability among workers is increasing and insurance is becoming harder to get. What would take place within your family if you were to become disabled for an extended period of time? If you're not absolutely certain your needs would be met, now is the best time to make it right. After all, tomorrow may be too late. - 15224
Social Security Factors
Most people in the United States are of the incorrect belief that, in the event they become injured, Social Security benefits will care for them. The problem is that gaining qualifying to receive Social Security coverage can be next to impossible. And even if you DO qualify, the benefits can take much longer to launch than expected. If you are to qualify for Social Security benefits, you will be required to provide proof that you are unable to perform any profession. If you can no longer work heavy construction but you can still push a pencil at minimum wage - it's very unlikely you will get access to Social Security benefits.
The Social Security Administration or SSA requires each of the below criteria to be met in full before granting disability benefits.
1. He/She has in incapable of engaging in a significant gainful activity (SGA).
2. He/She is incapable as a result of one or more medically verified physical or mental impairment.
3. He/She has been incapable or is expected to remain incapable for a continued period of at least one year or the incapacity is expected to, or will result, in death.
To meet requirements, applicants are required to have worked twenty out of the prior forty quarters preceding the time of the disability. Investments and paid sick time are not considered gainful income. Conversely, if you file for disability and currently earn greater than 860 dollars per month (as of 2006) you will likely be denied claim. Should you be approved for coverage, the maximum pay out for a thirty year old adult, who previously earned 70,000 dollars per year, is a mere 1,600 dollars per month (in most cases, not even enough to cover a mortgage payment).
Protect Yourself and Your Family
You should take time to closely examine your emergency funds and liquid assets in order to determine your position in the event of a disability. Would $1,600 per month in Social Security benefits be enough to sustain your family's needs? Very likely, the answer is no. In 2004 the average monthly income per household was 3,700 dollars. According to this data, supplemental income would be required for most families should the primary provider become disabled.
Take some time to review your employer's benefits package. Many employers offer some type of disability coverage, be it 'short-term' (ninety days or less) or 'long-term' (greater than ninety days). Any coverage of this type should factor into your process of preparing for an emergency.
After taking into account the risk management that you already have put into place, you can make an informed judgment as whether or not you need additional coverage. If you determine your current provisions will not be enough to support you and your family, you should consider purchasing additional disability insurance. Because premiums and rates increase with age, you will probably need to make an immediate purchase while you are disease and injury free.
Here are a few factors to consider:
How much disability coverage will I need?
You should ensure your coverage would maintain your current standards of living, meanwhile taking into account the money you will save on a commute, eating out, etc.
"Elimination period"?
Simply put, it's the quantity of time you will wait for your benefits to start up. The classic elimination period for the majority of policies is ninety days, which means you should encompass your own funds for the initial ninety days of disability. You should be certain to arm yourself with this knowledge before making any insurance decisions.
For what duration will a single policy pay?
You determine the length of time your policy will pay based on the policy you choose. Most people choose a policy that will cover them to retirement age (about 65 years of age), at which point they can take advantage of retirement benefits. If you have no retirement benefits, you may need to consider a different policy.
What do "own occupation" and "any occupation" mean?
Some policies specify your disability as the inability to perform within your current or "own" occupation. This means you will still get the benefit even though you may be able to work in a different field. If you select a policy that specifies the inability to perform in "any" occupation, you will have to provide evidence you are incapable of performing "any" job before the policy will pay out.
In 2004 only about 27 percent of income earners in the United States allocated some part of their total household income to disability insurance. This can be seen in most expense budget spreadsheet, at the same time greater than 20 out of 168 million people in the working population reported some type of disability. The instance of disability among workers is increasing and insurance is becoming harder to get. What would take place within your family if you were to become disabled for an extended period of time? If you're not absolutely certain your needs would be met, now is the best time to make it right. After all, tomorrow may be too late. - 15224
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