Why We Need A Long Term Disability Insurance
Our society has made so many advancements in medicine and medical research that people are living longer lives. Many diseases and injuries that would have meant death just a generation ago can now be treated and healed. The advancements are wonderful, but also very costly. For some people it is frustrating to know that the technology to improve their life is available, but it may not be affordable.
The insurance industry is trying to keep up with the medical advancements. This is difficult for them because their main reason for being in business is to make a profit. If they are paying out large insurance claims they make less of a profit. In order to assure a strong profit insurance companies are starting to create compartment insurance policies for people to buy. One insurance that was not available to the generation before us is long term disability. This insurance pays a portion of your income to you if you become disabled during your working years. Long term disability is paid out if you are going to be unable to work for longer than six months.
The amount that is paid to you depends upon what type of policy you have taken out. When I was offered long term disability in my past job my premium was based on what percentage of my income I wanted to receive should I become disabled. I could pay to receive up to eighty percent of my salary. The interesting thing about long term disability is that the younger you take out the policy the cheaper the rate is, and it will not go up. The rate you originally take the policy out as is the rate that you pay for as long as you carry the policy. Because of this I have encouraged my children to take out long term disability insurance as soon as they begin working. They will have the safe guard of having an income, without having high premiums.
Many people feel that it is not necessary to have long term disability insurance because there is the social security disability program. Social security disability can be very time consuming to get. Some claims can take as long as three years to process and during that time there is no income coming in. You can still apply for social security disability if you have long term disability insurance. The nice thing is that you have an income coming in while the social security claim is being filed. Also you have the documentation from the doctors already gathered. We all pay a great deal for insurance premiums, however not having the insurance can lead to bankruptcy in a very short time.
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Source: http://ezinearticles.com/
Added: March 3, 2008
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