Is individual disability insurance worth it?

Individual disability insurance is one of those policies that are often under looked, yet it remains vital in our day-to-day life of uncertainties. Most of the time, many individuals prioritize insurance policies like auto, homeowners, travel, and the likes. But if your income is essential for meeting daily expenses, then, individual disability insurance policy is worth it. It provides a financial safety net that will replace a portion of your earnings in case you are unable to work due to illness or injury. So, this guide will help you understand what your individual disability insurance will cover, its benefits and the companies you can trust in the USA.

What is individual disability?

Individual disability refers to a situation where you, as an individual, become disabled either temporarily or permanently. This disability can result from various causes, such as an accident or illness. It may prevent you from maintaining your usual work routine, requiring you to take time off to focus on your health. In some cases, you might even lose your job because you’re unable to fulfill your duties.

Facing an unexpected disability can be particularly challenging, especially if you rely heavily on your salary for daily living expenses. The risk of job loss could mean a significant reduction or loss of income, which can impact your ability to support yourself. This is where individual disability insurance comes into play, providing financial support during such difficult times.

What is individual disability insurance?

Individual disability insurance is a policy that provides you with a portion of your income, typically between 50% and 70% of what you used to earn, during periods when you are disabled and unable to work. There are two main types of disability insurance: group disability insurance, which is often provided by an employer to offer benefits to employees, and individual disability insurance, which you can choose to purchase on your own for additional coverage alongside any group disability insurance you may have.

What does individual disability cover?

Depending on your policy provider and the type of coverage you choose, individual disability insurance provides protection when you’re unable to work due to a disability. It typically provides benefits for both short-term and long-term disabilities, depending on the policy. Conditions covered may include physical injuries, chronic illnesses, mental health issues, or even recovery from surgeries that prevent you from performing your job. Here are other conditions that are commonly covered:

Broken bones that temporarily or permanently prevent you from working.
Chronic illnesses like cancer or heart disease
Disabilities resulting from road accidents.
Spinal cord injuries that may cause paralysis

The coverage benefits you receive will depend on the specifics of your policy, offering support for either short-term or long-term disabilities.

What does individual disability not cover?

Coverage limitations may occur if your disability doesn’t meet the policy’s claim requirements or if it’s caused by factors not covered by the policy. For example, disabilities resulting from self-inflicted injuries are generally not covered by individual disability insurance. Most policies provide coverage for disabilities caused by factors beyond your control. To fully understand your coverage benefits and limitations, it’s important to carefully review and understand your policy, as different providers offer varying packages with distinct costs, benefits, and limitations.

Is individual disability insurance worth it?

Yes, individual disability insurance is certainly valuable, particularly for those who depend on their personal income to cover basic needs. With this insurance, you’ll continue to receive a portion of your income that you might otherwise lose if you didn’t have coverage. Even if your employer provides group disability insurance, the coverage may be limited, and you might need additional individual coverage for better protection.

Which companies provide individual disability insurance coverage in the USA?

Here are some of the companies in the USA that offer individual disability insurance coverage you may as well like to consider:

1. Mutual of Omaha

Mutual of Omaha, recognized as a leading disability insurance provider in the USA, offers long-term disability insurance with a maximum benefit of up to $20,000 per month. Coverage can extend from 18 years old to 70 years old, with policy durations available for 6 months, 1 year, 2 years, 5 years, or 10 years, depending on whether you need short-term or long-term coverage. With Mutual of Omaha, you can be confident that you will have extended coverage throughout your disability period.

2. Breeze

Another reputable policy provider is Breeze, which offers disability insurance to replace lost income during both short-term and long-term disability periods. With their long-term disability insurance, you can receive monthly benefits starting as soon as 30 days, with coverage extending up to retirement age. For short-term disability insurance, you can get weekly benefits that begin immediately and continue for up to 2 years if you become too ill or injured to work. Breeze’s policy coverage is both inexpensive and affordable. Consider checking out Breeze individual disability insurance for more information.

3. Guardian

Guardian provides a broad selection of disability insurance options for both employers and individuals. Their individual disability insurance covers both short-term and long-term needs, allowing you to buy and tailor your policy to meet your specific requirements. If you’re interested in obtaining a quote, you can easily request one through their website, and it will be processed promptly.

4. Ameritas

Ameritas offers disability insurance with various policy discounts that help reduce coverage costs. In addition to standard coverage, you can purchase optional riders such as the cost of living adjustment, which increases your benefits according to inflation, and the future increase option rider, which allows you to boost your disability coverage as your salary grows. Coverage is available up to age 67, with monthly benefits of up to $30,000.

5. Mass mutual

MassMutual’s Radius Choice policy provides disability insurance if you’re unable to perform some or all of your job duties. It offers customizable coverage with various built-in benefits and optional add-ons, such as the cost of living adjustment and future increase option riders. Coverage is available for individuals aged 18 to 64, with some plans extending benefits up to age 70.

Editor’s Remarks

When exploring individual disability insurance, be mindful of policy exclusions, particularly regarding the types of disabilities covered and the age limits of the policy. Understanding these details will help you understand the specifics of what is covered and the duration of coverage. And, if you have any questions or need further assistance, don’t hesitate to contact our insurance experts.

Frequently Asked Questions

Is long term disability insurance worth it?

Certainly! Long-term disability insurance is very beneficial for covering your essential needs and living expenses when you’re unable to work due to a disability. Unlike short-term disability insurance, it provides support for a more extended period.

Do i need long term disability insurance?

You should take into account factors such as your health history, job type, and living expenses to determine if you need long-term disability coverage. Considering these aspects is important because they can impact your decision.

Should i get long term disability insurance?

Yes, obtaining long-term disability insurance is crucial to ensure you are fully protected and can continue to support yourself or your family even if you are disabled and unable to work.

Is short term disability insurance worth it?

Short-term disability insurance is intended to provide coverage for a limited period when you are unable to perform either part or all of your work duties. In some states, this type of policy is primarily offered by specific employers to their employees.