Disability And Long Term Care Insurance

Disability insurance is possibly even more important than life insurance. Just as no one expects to die, yet people plan for possible future disaster, it is unpleasant to think about getting sick or spending extended periods of time in rehab or a nursing facility. However, proper planning and sufficient disability coverage can make the difference to many when it comes to paying rent, buying food, and paying utility bills while recuperating from illness or injury.

While many employers offer disability insurance for employees, there are also private policies available that provide more comprehensive coverage and tax-free payouts.

There are two forms of disability insurance policies:

  • Short-term disability provides replacement salary in the event of sickness or missed work and wages for up to six months. Initial disability payouts may be high but usually drop to about 60% of the employee’s wages for the duration of the sickness.
  • Long-term disability is very possibly the most important insurance you can purchase.Since many diseases today are disabling rather than deadly, the length of incapacitation can be life-long. Long-term care insurance will pay a percentage of the policy holder’s wages for up to 5 or 10 years, and in some cases, until the age of 65.
  • Long-term care insurance generally covers the inevitable expenses related to extended health care coverage at home, in a nursing home, or at an assisted-living facility, usually for elderly people. Eligibility criteria for payouts may vary, but usually begin when the policy holder is no longer able to perform routine daily tasks, or has had previous hospitalization or home-care.
  • If you rely on your monthly paycheck to cover basic expenses you are a candidate for disability insurance. However, even if you have some money saved up in case of an emergency, it is likely that rising medical costs or extended life-spans can quickly dry-up your resources.

 

At Peak Benefits & Insurance Solutions we can help you purchase the policy that best suits your needs. Specializing in individual, group and executive policies, our knowledgeable,friendly agents have but one goal- to help you secure peace of mind and obtain the best possible coverage for the best possible price.