Long-term disability insurance is becoming increasingly popular with insurance companies, but is it worth getting? Let’s take a look.
We will assume that you already know what this type of insurance offers. If you do not, then look it up. This type of insurance is an excellent choice for you and your income.
The Pros of Long-Term Disability Insurance
Disability insurance ensures you continue receiving an income, even if you suffer a disability. People’s financial lives have been left in ruins because they have been unable to work due to disabilities. This type of insurance will help to protect you against that. You won’t see a plunge in your income with the right insurance. Not a drastic one, at least. Most policies will cover less than 100% of your lost income.
This does mean that it people have more peace of mind. Nobody ever wants to feel as if they are one accident away from losing their job, which can cause issues for their family.
When you have insurance, your recovery becomes your primary focus. Many people have dealt with severe injuries and feel they must return to work far sooner than recommended. This means they heal at a far slower speed or may even prevent healing altogether. You don’t have to worry about that with this type of insurance.
Finally, long-term disability insurance will help protect you from bankruptcy, inability to pay your bills, etc. Again, this will give you greater peace of mind as you don’t have to worry about your life being changed far more than it needs to be, i.e. no switching off of the utilities, which can worsen your issues.
The Cons of Long-Term Disability Insurance
The pros of long-term disability insurance may seem significant, but it doesn’t necessarily mean that this type of insurance will be right for you.
For starters, this type of insurance can be costly. It may be unaffordable if you are working hard to make ends meet. If you live paycheck to paycheck, you may not have the spare cash to afford this type of insurance. It is a great shame, though. It is often those living paycheck to paycheck that will usually get the most benefit from it.
Claiming insurance can be tricky too. Insurance companies prefer to avoid paying out cash, making the process tough to navigate. Working with a reputable long-term disability lawyer can be highly beneficial here, but that is just an extra expense in some cases.
You will also need to gather evidence to prove your disability. This includes medical reports (again, it is extra money spent). You need those medical reports to convince the insurance company to pay out successfully.
Finally, your disability payments are not going to start automatically. Often, an insurance policy like this will make you wait several months before receiving your first payment. This means that you will often be months without receiving any cash. Although, this is better than the alternative. If you didn’t have disability insurance, you wouldn’t accept a cent at any point.
We have given you a general overview of the pros and cons of long-term disability insurance here. This has given you more of an idea of whether this type of insurance is right for you. We understand that, as excellent as it is, it may not be for everybody.
Remember, every policy is different. We suggest you work through any policy’s terms and conditions to determine whether it is right for you. You always want to get the biggest bang from a reputable insurer. Shop around. You will thank us.