Disability insurance will provide with money in case you became disabled or are unable to work. This insurance helps to protect you and your family from suffering from financial strain due to serious illness or injury. Disability will generally pay you a percentage of your income each week or month until you become well enough to work again.
There is a waiting period before disability insurance will kick in. These period is usually between 30 and 90 days. The waiting period is in place to show that you truly will not be able to return to work. Many disability insurance policies will cover you throughout your working life, or until you reach retirement age. Other policies have a limit on the number of years they will pay disability benefits.
You should read your policy carefully so you know if it includes of cost of living adjustments, which increases the amount you are paid as the cost of living increases. Additionally some policies will allow you to work part-time and then pay you the difference if you are not able to work full-time. Other policies do not allow this option.
You can purchase disability insurance through your work. This is often less expensive since you will be receiving a group rate and discount. However, the policy may not follow you to a new job. You can also purchase it individually.
Generally the younger you are the lower the premiums for disability insurance. This is because you are less likely to be disabled. You may be able to lock in a lower rate by signing up early. You should also have an emergency fund or short term disability insurance in place to cover the gap period before your coverage kicks in.
