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Disability Insurance

Disability Insurance

There are so many examples of the opportunity to be gainfully employed being taken away from folks due to a disability. When this occurs, having a source of income to replace lost income can be absolutely paramount. This is for what disability insurance is designed and its function in helping those are no longer able to work can be quite the God send.

Most folks acquire disability insurance from their employer. This kind of insurance coverage can work in one of two ways. It can provide compensation for all or part of an employee’s salary until such a time as they are able to return to the job or it can pay out a monthly figure that is equal to between 60 and 100 percent of their original salary if they are unable to go back to the job.

Making a claim for disability is not easy for most as generally we all would prefer to be gainfully employed and attend to our work duties every day. Should this not be possible, once a claim is filed and then approved by the insurance provider as meeting the policy guidelines, compensation can commence almost instantaneously. When an employee signs up for this kind of insurance via their employer, they generally can only choose to enroll for a coverage level that is not more than their present salary. This addresses the possibility that some workers may claim disability and then unfairly receive more compensation than what they were making in salary. This is a deterrent to workers attempting to claim an injury and then make out with payments that exceed what they made at their job. This cuts down on fraud and keeps policy premiums down. It is good to keep in mind that there are riders available that allow the disability payments to keep in parity with inflation as well as any salary bumps that had occurred on the job. Once a person is diagnosed to be completely disabled and unable to work in any capacity, then payments can be made either on a regular monthly basis or as a lump cash sum, depending upon the policy terms.

While no one would desire to be disabled, those who become so and are fortunate enough to have this insurance will be very well served and relieved to know that they had this option when no longer able to be a working person