It’s never been more difficult to build out a budget for years at a time than it is right now. After all, given the number of market fluctuations, the rate at which employees change profession, and general economic uncertainty, it’s easy to see why forming a cogent financial plan is so tricky. Furthermore it’s no wonder many professionals are looking for ways to make money from home in their spare time. With all this confusion, one could be forgiven for lacking a basic understanding of the different types of insurance programs. Yet, finding the right disability insurance plan for your situation could prevent massive financial pitfalls in the coming years. To that end, here is a beginner’s guide to disability insurance that you can use to ensure you secure the coverage you need:
What is Disability Insurance?
Let’s start with a definition: disability insurance, is insurance coverage that specifically applies to disabilities that prevent someone from performing their job. Disability insurance plans guarantee that if someone suffers an injury or becomes ill for an extended period of time, they’ll still receive a portion of their regular wages. One common misconception regarding disability insurance is that it’s synonymous with workers’ compensation. However, that’s not the case. Workers’ comp covers short-term lay-offs caused by injuries experienced on the job. Disability insurance, by contrast, is designed for long-term conditions. (Although, there is such a thing as short-term disability insurance.)
Factors that Influence Disability Insurance
There are a number of factors that will affect not only how much an individual pays for their disability insurance program, but what that program will cover in the first place. For instance, disability insurance typically varies from profession-to-profession; and the definition of “disabled” is more fluid than most people realize. As such, disability insurance for physicians will differ from disability insurance plans for construction workers, for instance.
How Can I Find the Right Plan for Me?
At the end of the day, only you can say which disability insurance plan will work best for your situation. Your line of work, state of residence, age, familial status, and financial state will all affect the type of coverage you could and should pursue. In many instances, modern professionals will opt to join a group policy offered by their employers. While this option will usually cost less than applying for insurance on your own, it may or may not cover everything you need addressed in your ideal plan. Always make sure to read and review insurance policies carefully, and never forgo requisite insurance coverage in an attempt to save money. Remember, there are better ways to budget and less essential expenses to cut
