Disability insurance is for people who are unable to work because of an injury or disability. The insurance pays a portion of the person’s income, until they are able to start working again. The amount available varies, but it generally ranges between 45 and 65 percent of the person’s total income.
Disability is for workers who cannot afford to lose income by being out of work for weeks or months. Most employers offer basic disability plans. These plans should make it possible for you to miss work without suffering financially. Check your job-sponsored disability plan before assuming it’s enough to take care of your needs. If the plan is hardly enough, then a supplemental disability plan will help make up the difference.
If you are self-employed, then you can get disability insurance as well. You will have to buy your insurance on your own, as you have no employer to offer it to you. This is especially important for self-employed people. When you’re self-employed, loss of income due to disability could ruin your business.
When looking at disability plans, there are several things to consider. Most importantly, see how long you’ll have to wait before you receive the benefits. Also, figure out exactly how much you’ll receive.