Disability Insurance – A Good Idea For All Florida Workers

Those who work in particularly dangerous jobs and careers, like police, firefighters, railroad workers, construction workers, deep-seas fishers, and more will almost certainly think to purchase disability insurance.

But the truth is, around one in four Florida workers will be disabled for at least a few months at some point during their career. Almost all workers would do well to add a disability insurance policy – and federal and/or state aid (if it comes at all) is often not enough.

If you can work for an employer who offers a free or highly discounted disability policy, that’s a huge plus. Otherwise, you could consider purchasing a personal policy just for you and your family.

Here are the ins and outs of how disability insurance works and why every worker should consider adding it.

How Does Disability Insurance Work? 

In many ways, disability insurance works in a way similar to health insurance or any other type of insurance. You pay monthly premiums to an insurer who is then obligated to pay out monthly benefits to you should you become disabled.

Unlike life insurance, we are talking about regular benefits over a period of time, not just a one-time lump sum. Unlike Worker’s compensation insurance, coverage is not based on whether the injury took place on the job site but simply on whether or not it impacts your ability to continue to work as usual.

Policies differ as to how they define a disability, how much they will pay and for how long, how much of your income is covered, how high the cap is (if there is one), and in many other ways. So it’s very important to talk to an experienced insurance broker when choosing or customizing your policy.

5 Questions To Ask When Shopping For Disability Insurance

To find the best disability policy, you need to know the right questions to ask. Here are five areas to probe when looking for disability insurance:

1. Can I get a group discount? If you buy your disability insurance through your employer, you can often get a hefty discount or even sometimes get it for free. Don’t miss out on any savings just because you were unaware of them!
2. What percentage of my income is covered? On the high end, most policies replace from 60% to 80% of your pre-disability income.
3. Is this a short-term or long-term plan? You want to know if only short-term disabilities are covered or if long-term ones are covered too. 
4. Is there a benefits cap? Many policies pay out up to a specific dollar amount. Or they may only pay for so many months or years. Some also only pay up until you reach a certain age.
5. How does the policy define “disability.” Every insurer has its own list of covered disabilities and exclusions. Also, some allow you to work for less money at a new job if you can no longer do your old job due to a disability – others don’t. 

3 Good Reasons You Need A Disability Insurance Policy

Why should I be concerned about getting disability insurance? There are many answers we could give to that question, but let’s just focus on the three biggest reasons why people seek out a disability policy:

• Disabilities are not at all uncommon. It’s not just “freak accidents” that are covered by many policies but other causes too, like severe arthritis, back pain, heart disease, diabetes, or depression. The odds of meeting up with such a disability are rather high.
• Your family is depending on you. If you are the “breadwinner” of the family and you suddenly find yourself unable to work your normal job or to work at all, the financial repercussions could be devastating. Disability insurance may not pay for all of your needs, but it can take care of a large part of them.
• You can’t count on federal or state disability benefits. It’s not a given that if you are disabled you will qualify for SSDI and/or SSI benefits. It can be difficult to get approved and may require multiple attempts. Many have to hire a lawyer to get it done. In case you can’t qualify for SSDI, as an added source of income, and to get benefits while waiting for SSDI to be approved – it makes sense to have a separate disability insurance policy of your own.

Life is uncertain. Many, quite aware of that fact, buy life insurance and health insurance. But disability insurance is no less important for those who work for a living. It is especially crucial for those whose work supports others. Your ability to work and earn a living is among your most valuable assets and is well worth insuring.

To learn more about disability insurance, how it works, and how it can benefit you, contact an experienced insurance broker at Flagler Financial today!