Owning a business or being a salaried person without any benefits may help you qualify for certain liabilities that will help protect you should you need it. If you become disabled, you may be covered under these liabilities. No one plans on becoming sick and when it happens you may be out of work for a while, or maybe you don’t back to work at all. If you become disabled, a portion of your income can be lost but with disability insurance, you can get up to 60% of it back based on your previous year income. You will qualify for this amount until you reach retirement age. Before you purchase a disability insurance policy, there are a few things that you should consider.
Should you get an individual policy?
There are a lot of companies that will offer short term and long term disability insurance options. Start by determining if you need an individual plan. If you are self-employed, the answer to that question is yes. No one is going to cover you so you have to cover yourself. If you make over $200,000 per year, then you will want to consider an individual plan. If your employer is offering you disability insurance, you should be good with that policy.
Does it cover your current occupation?
There are a few factors that help to determine your eligibility for disability insurance. You will want to find a policy that is going to cover your occupation. Maybe your occupation is too risky for the insurance to cover you. There are certain occupations that will restrict or even get you turned down on a disability insurance policy.
What is your average income?
The amount you are given for disability insurance can vary, but your income is normally used as a way to calculate your coverage. If your income varies from month to month, the insurance company may ask for your last three years’ worth of tax returns. They will take the three years and total it up then divide it into three to get your estimated gross annual income.
What is your current age?
The age that you are now will also be a determining factor in if you qualify for disability insurance. Most disability insurance stops at 65 so once you reach this age, you will not receive any more benefits. Many people are working past the age of retirement and for those, there are certain disability insurance policies to better suit them.
A qualified disability lawyer who can fight for you
There is most likely a fine print to all disability policies, especially if you have to use it because of an injury. It is always helpful to receive advice from your personal injury lawyer in Collingwood, if you have been injured and may need to receive benefits from it because of the injury.