Disability insurance is an important form of protection for anyone who relies on their income to pay for living expenses, support their family, or save for retirement. It provides a financial safety net in the event that you become disabled and are unable to work. Unfortunately, many people don’t understand the importance of disability insurance and skimp on coverage.
The cost of disability insurance can vary greatly depending on your age, gender, occupation, and other factors. Generally, you can expect to pay between 1 to 3 percent of your annual salary for a policy. For example, if you make $100,000 per year, you can expect to pay between $83 - $250 per month for a policy. While this may seem like a lot of money, it is a small price to pay for the peace of mind that comes with knowing you are protected in the event of a disability.
There are two main types of disability insurance: short-term and long-term. Short-term disability insurance typically covers up to six months of lost wages, while long-term disability insurance can cover up to five years or until retirement. Both types of policies provide a benefit that replaces a portion of your earnings, ranging from 50% to 80%. That money can be used to pay for living expenses, repay loans, or even put into savings.
In addition to traditional disability policies, there are several options you should consider when purchasing a policy. These include additional purchase options, coordination of benefits, and accident-only disability insurance. Accident-only disability insurance doesn’t require health underwriting and is much less expensive than a traditional coverage. However, it only covers 10% of disabilities caused by accidents.
Your health, occupation, and age can also affect the cost of disability insurance. If you’re in poor health, smoke, or have a family history of chronic disease, you will likely pay more for disability insurance. Similarly, more dangerous jobs and jobs that pay a high salary are typically more expensive to insure. Finally, your disability insurance cost will increase as you age because your likelihood of suffering an injury or illness increases.
It is important to note that not everyone needs disability insurance. If your income is no longer necessary, then you shouldn't have to protect it. Even if you're not independently wealthy, if you derive a lot of your income from passive sources that wouldn't be disrupted by a disability, then you may not need to purchase disability insurance.
However, for most people, disability insurance is a good investment. Without a policy, a period without income could make it hard to afford everyday necessities, support your family, or keep up with savings and retirement goals. Protecting your income from injury and illness is an important part of your overall financial plan.
When it comes to disability insurance, don’t skimp on coverage. Make sure you understand the different types of policies available and the factors that can affect the cost of a policy. Shop for the best rates and coverage and ensure you get the right amount of coverage for your needs. With the right policy in place, you can rest assured that you and your family will be taken care of in the event of a disability.
Disability Insurance Greenville - The Morgano Agency
If you are in need of disability insurance in Greenville contact The Morgano Agency today. We will be happy to help you get the protection you need with disability insurance in Greenville.