Low cost life and disability insurance coverage

Many individuals struggle to understand what low cost life and disability insurance coverage. There are two basic forms of low cost life and disability insurance coverage:

• short-term
• long-term disability

Short-term as its name implies is for a short period of time usually less than a year. Group short-term disability is more prevalent in the work place than long-term. One of the failures that individuals make is assuming that their policy covers 100% of their income. The policy usually covers up to 66 2/3%, it may be only be 50% for 13 weeks only.

The two main definitions used to define if benefits under a low cost life and disability insurance coverage policy are paid include own occupation and any occupation. Own occupation disability means you are unable to perform the substantial duties of your current position in a nutshell. Any occupation includes the duties of a job that you have been trained for through education, training, or experience.

Individual low cost life and disability insurance coverage covers a percentage of your income based on your occupation, the hazard of your responsibilities, and your income. The elimination periods for disability policies usually range from 30-365 days. If you become sick or disabled, exceed the elimination period, and become certified by a physician as unable to work, you may receive a tax free benefit except in rare cases. The low cost life and disability insurance coverage policy is coordinated with any group disability benefits you may be receiving as well as Social Security Disability Insurance if you qualify.

Things to consider when thinking about low cost life and disability insurance coverage:

 

• Can I get sick?

• Do accidents occur?
• Can I afford to self-fund?
• Can I live off my savings?
• Does my coverage at work cover short-term & long-term disability?

Finally, take into consideration that although you might find low cost life and disability insurance coverage, it doesn’t necessarily mean that they are sufficient for you.

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