Disability Insurance – Important Facts That You Should Know
The Social Security Administration controls the two disability programs: The Social Security and the Supplemental Security Income that offer help to those who are afflicted with disabilities. These are the most popular and the biggest of many similar associations. Though they are dissimilar in many ways, they perform the same function of helping disabled people who qualify certain criteria to be eligible for assistance.
If applying for disability reimbursements, the Social Security Office will verify your medical background to ensure qualification, but most often the amount received hardly meet your expenses.
The other means of obtaining disability benefits are by way of insurance companies. In such cases, if you are unexpectedly disabled, your insurance will dole out financial help. The company will pay you a percentage of your total income from the disability policy that you have taken, a sum that will look after when you are down and out.
You will not be required to approach the Social Security Office or convince them of your disability to receive any assistance. The Social security Disability program has nothing to do with the disability insurance that you take from an insurance company.
In the website “About Disability Insurance” it states that the basic idea of a disability insurance policy is to substitute 45 % to 60% of your total income free of tax, if you happened to fall sick or become so disabled that you are not in a position to earn any money. Disability insurance policies vary from one insurance company to another. Do not look for the cheapest; ensure that you take the best, because a cheap policy will not give you a decent monthly benefit.
There are a variety of disability insurance policies the two main ones being the short-term policy and the long-term policy. The short -term insurance is part of the other insurance benefits of another policy, and generally provides you with an income in the initial stages of your disability. Such disability insurances offer coverage for some week and will not stretch for more than a two year time period.
But in the long-term disability insurance, you are covered for many years and such policies are generally incorporated as a part of certain packages of their employment benefits. But there are a lot of people who take disability insurance policies separately.
You then have the Own-Occupation Disability Insurance policy that states; when you are helpless to carry out the functions of your regular occupation, this will be considered as the occupation that you were involved in when you became disabled, the insurance company will give you a claim on it even if you happen to be working elsewhere later.
Yet another very popular disability policy is the Income Replacement Insurance. In this policy, if you are incapacitated to carry out your duties due to illness or injury and you are not engaged in any other occupation the insurance will pay the claim.
The employee benefits also have another disability policy integrated into their package called the Gainful Occupation Coverage where if you are sick or injured and are unable to carry on with your work, or cannot do any other work for which you are qualified, you will be paid the claim.
You never know what is in store for you, so it would be a good idea to be armed with a disability insurance policy for yourself.