The Importance of Having Long-Term Disability Insurance
Regardless of whether it may be because of sickness or injury, many workers have benefited from having long-term disability insurance. This is a type of insurance policy that covers the worker when worker’s compensation does not apply, and only kicks in once the short-term disability has stopped. The long-term disability insurance acts as a buffer to cover your lost income if you are not able to return to work for a significant amount of time, although it is not a replacement for your actual salary.
Most people are not really aware or do not understand how long-term disability works. Certain rules and regulations regarding long-term disability insurance can make it difficult to acquire, which is why knowing more information about it could help in getting the best of this disability benefit.
A great majority of workers believe they don’t really need to have long-term disability. This is not true, as research has revealed one in four workers (aged 20 years old or older) are at risk of permanent disability before reaching 67 years old. Having a back-up insurance can help you prepare for your future should an injury cause you a long-term disability. This insurance benefit is not only for men but also for women. It is also not the same as worker’s compensation, since worker’s compensation covers for lost income due to injuries that happened because of or while performing work, and during working hours.
Younger workers also believe they are too young to consider it, but data from 2009-2012 has shown that 41% of beneficiaries of long-term disability insurance have been those from age 50, and a third were from 40 and below. If you are not capable of paying the voluntary worker’s benefit, then you can ask your employer for options if they offer an employer fully paid plan or shared cost plan. Getting an individual disability insurance can be a bit steep on the budget, so better to inquire with your employer if they can offer you any additional coverage.
Accidents or sickness can occur anytime, therefore having long-term disability benefit can lower your physical, emotional, and financial stress should an uneventful thing happens.