While you might think that it’s not impossible for you to be disabled, you might say that there is a very slim chance of becoming so. Maybe you’re a professional who spends most of his time in the office and is not exposed to dangerous tasks or someone who would stay at home during the weekend rather than go out for an adventure. Regardless of your profession, age, and hobbies, accidents that cause long-term disabilities can happen anytime, anywhere, and to anyone.
One out of four early 20-year-olds become disabled sometime before their retirement. This suggests that long-term disability doesn’t discriminate. You’re well and kicking this morning and may become disabled tomorrow. While we respect people with disabilities, long-term disability can significantly impact one’s life. It affects not only your physical health but also your psychological and emotional well-being. Further, such strips you of your capacity to make a living.
Only a few people can afford to stop working for a long time. If you became disabled due to an accident, you can tap into your savings account to survive, but that can only last for some time. This is where a long-term disability insurance enters and can help. Long-Term disability insurance provides you with an income for a specified period. Many get such insurance through their employers, while others buy individual insurance on their own.
For more details about long-term disability insurance, take time to analyze its pros and cons.
Advantages Of Long-term Disability Insurance
- If you become disabled, this insurance will pay you a portion of your latest income, which you can use to pay for your daily needs, medical bills, etc. This way, you can prevent any undue situations such as filing for bankruptcy or foreclosures of your properties. It serves as your income, which may be substantially low than what you were earning before, but is still a great help.
- It is possible to have both your insurance payments from private insurance agencies and government-administered compensations like Social Security.
- Payments will be made usually regardless of the cause of the disability and whether the disablement occurred in the workplace or outside.
- Payments are made as soon as you have proven that you have a disability covered by your plan. There’s just a short elimination period of usually at least 90 days, and after that, you will start receiving payments from the insurance.
Disadvantages Of Long-term Disability Insurance
- As mentioned, you’ll have to wait for the elimination period to pass. Within this period, you might have to use your savings or rely on your family for your daily needs.
- This type of insurance is only available for those who are earning an income.
- Payments are made only if you’re unable to continue working or when you can’t perform the work-related tasks.
- The long-term disability insurance payments will only be made for a certain period, which ranges from two years to five years. After that, you’re left with no source of income again and will need to tap on other sources to survive.
- Any claims from Social Security will be computed and subtracted from what you should receive from your private long-term disability insurance.
Depending on your situation now, long-term disability insurance may be an excellent or a not-so-good idea. Review the terms and conditions of any insurance plan you might consider. It is also recommended to consult a long-term disability insurance attorney who can explain the insurance word for word. Getting help to understand legal and technical terms is not a bad idea.
Andrew is a passionate writer for Darras Law, writing about disabilities and the law. He has written about many subjects aimed to help those who have questions unanswered. In his spare time he enjoys working on volunteering for those less fortunate.