Disability Coverage

Unlike Long Term Care Insurance which protects “assets”, Disability Insurance protects “income”. One would purchase this type of insurance as a protection against the potential loss of wages. In most cases, if an individual finds him or herself in a situation where they are unable to continue working because of a medical disability, they could incur a substantial financial loss. Disability insurance would provide funds for covering expenses and assist in paying bills. This type of insurance can vary in choices and plans available. Many have guidelines as to the nature of the disability or the duration of the benefits however; policies today are more flexible than in years past and generally provide favorable payouts. Many employers will provide disability benefits to employees, however, in self-employment situations, this type of insurance plan is necessary in order for someone to prepare for business or family expenses should an accident or disability occur. Most plans designate payouts based on a percentage of the normal monthly income.