Disability Insurance

Disability Insurance

Disability insurance is a kind of insurance coverage that helps you meet expenses and maintain a daily living standard if you are not able to work due to disabling illness, injury, sickness, disability, or accident. Disability insurance can help you pay bills and cover expenses, including food, clothing, mortgage, tuition, utilities, and car payments. This form of insurance offers you financial security and replaces a part of your income until you are able to return to work.

You may apply for either short-term or long-term disability insurance or even both. This form of insurance provides partial wage replacement if you are not able to work due to a disability.

What is Disability?

Any physical or mental illness or injury that does not allow you to perform regular work is known as disability.  Disability insurance is designed specifically to offer you financial security in the event a prolonged injury or illness during your working years, which might disable you from making both ends meet. This kind of coverage protects your future earnings if illness or disability strikes. According to the US census, 30 million Americans between 21 and 64 years of age are disabled.

How insurance policies define disability:

  • Own occupation states that if you are unable to work in the present job as a result of injury or illness, a benefit will be paid to you. You will receive the benefit even if you earn from another occupation.
  • Transitional occupation states that disability insurance will be paid to you if you are unable to work in the job due to an injury or sickness. Your benefits remain the same even if your income from another job is more than the pre-disability income.
  • Own occupation and not engaged states that you will receive a benefit if you an injury or sickness prevents you from working in your current occupation; however, you must prove you are not engaged in any other occupation.
  • Regular occupation states that you derive benefits if you are unable to work in your present occupation; however, you would no longer be eligible for benefits if you earn in another occupation.
  • Total Disability states that you will receive benefits if you are unable to work in any occupation due to total disability.

Insurance providers look at your gross income to determine your eligibility of benefits.

If you are fully dependent on your salary to pay your bills, consider buying disability income insurance, which can help you maintain your lifestyle and protect your family from falling into debt.

Lastly, there are various options such as how soon you would need the money. There are 30, 90 and 180 day waiting periods before which you start receiving benefits. The longer you can wait the lower the cost of the disability insurance. Also, you may select the length of time you need to receive money. Most common are between 2 and 4 years although to age 64 is another option which increases the premium.  Call us today to quote your disability insurance.

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Aaron J. Farmer Insurance Agency, Inc.
7960 Silverton Ave. Ste. 202 San Diego, CA 92126
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