When To Seek Disability Insurance Advice

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Updated: 05 July 2024
Written by Insuranceopedia Staff
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When suffering from a chronic illness or healing from a serious injury, we all want to feel safe and recover at home. The cost of the recovery, including treatment, medical tests, and medication, can cost hundreds of dollars.

Most importantly, if the sickness and injuries are serious, you won’t be able to work temporarily or permanently. And unfortunately, many Americans are not able to afford their expenses in such situations. This is where disability insurance comes in!

You might be able to afford your medical and daily expenses and be thinking, Why should I get disability insurance? Or when should I seek disability insurance advice?

Disability insurance (DI) is a crucial part of financial planning, but it is often overlooked. It protects your income if illness or injury prevents you from working. While many employers offer some form of short-term disability, long-term disability can be a significant financial burden.

Understanding when to seek disability advice can make a significant difference in ensuring financial stability during unexpected life events. This blog explains what disability insurance covers, who can get it, the best time to obtain it, and the importance of hiring a disability insurance lawyer.

Let’s get started.

What Does Disability Insurance Cover?

There could be several reasons for disability, and the insurance specifically provides income replacement. The DI typically covers a portion of your lost wages, ensuring you can maintain your standard of living because you’re unable to work.

Here’s what disability insurance usually covers:

  • Income Replacement: Disability insurance replaces a portion (typically 60-80%) of your gross income if you become disabled and unable to work. This helps you maintain your standard of living and helps with daily living expenses such as mortgage payments and utility bills.
  • Benefit Period: The length of time DI pays benefits depends on the policy. There are two types: Short-Term Disability Insurance (STD) and Long-Term Disability Insurance (LTD).
  • Elimination Period: This is the waiting period between becoming disabled and receiving benefits. It can range from 30 days to a year.

Additional Coverages:

  • Cost-of-living adjustments
  • Rehabilitation benefits
  • Rider benefits

Who Can Get Disability Insurance?

Most working individuals can qualify for DI, including:

  • Employees
  • Self-employed Individuals:
  • High-Risk Professionals (doctors, lawyers, and athletes)
  • Recent graduates
  • Stay-at-Home Parents

When Is The Best Time To Get Disability Insurance Advice?

No one actually knows the future, like when a disability comes and prevents you from working.

But look at these statistics from the Social Security Administration: More than one in four of today’s 20-year-olds will face disability before they reach traditional retirement age.

So, the best time to get disability insurance is as early as possible. Here are key considerations for timing your purchase:

  • Starting a New Job: When transitioning to a new job, especially if it involves higher income or increased risks, it’s advised to get disability insurance coverage to match your new circumstances.
  • Getting Married or Having Children: A disability can significantly impact your ability to provide for dependents. DI offers financial security.
  • Experiencing Health Changes: If you have a family history of medical conditions or have recently started experiencing health issues, you should get disability insurance advice.

Final Thoughts

Disability insurance is a significant part of the financial plan, as it provides critical income protection and support in times of need. Understanding why disability insurance is essential can make a significant difference in your financial stability.

Moreover, hiring a disability insurance lawyer can help you navigate the complexities of insurance policies and claims to ensure your future financial well-being.

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