Disability insurance can often be a confusing topic for many newly employed individuals. Health insurance, car insurance, and even life insurance are often discussed but disability insurance sometimes gets overlooked. What is disability insurance and what does it cover? For working adults, disability insurance is essential. Let’s take a look at what it is and why it is so important.
What is Disability Insurance?
Disability insurance is designed to cover wages in the event you are not able to work, whether it be due to an injury or due to an illness. The amount of coverage you have with disability insurance is based on your policy, but around 70% reimbursement of wages is average for a private policy. In some cases employers offer disability coverage, but in most cases finding a private insurance policy is necessary. But what does disability insurance actually cover?
Coverage for Injury
Disability insurance can cover you in the event you are injured on or off the job. If you work in a dangerous environment your employer may offer limited on the job coverage, but private disability insurance can also cover you in the event that you are injured at home, while traveling, or in a car accident. Accidents and injuries can happen anytime to anyone, and disability insurance can protect your income should something happen.
Coverage for Illness
In addition to coverage for injuries, disability insurance also covers you in the event of an illness that may keep you from your job. For example, after a cancer diagnosis you can utilize disability insurance to cover some of your salary if you are unable to continue working for a time. Having this type of coverage can help you heal faster with less stress and financial burden.
Why Do I Need It?
Many people feel disability insurance isn’t necessary because they don’t work in a dangerous environment, but accidents and illness can happen without any warning. While disability insurance can be costly, it is worth it if you rely on your income to pay the bills. With nearly a quarter of all working adults becoming disabled at some point in their career, it’s not something to skimp on.
If you are in need of disability insurance in Maryland, or you’d simply like to discuss your particular needs in more detail, call us at Freedom Insurance today. We’d love to discuss your options with you so that you can find the right plan for you and your circumstances.