Does your employer offer disability insurance coverage? If so, do you have it, or did you decline it? A study shows that few workers are covered by disability insurance. This could, potentially, lead to very serious financial difficulties for that worker, and for his or her family, if something bad were to happen.
There are a lot of people who simply haven’t considered the potential value of having disability insurance until after their employer mentions it to them. It is possible to get disability insurance from a private insurance company, but most people are going to find that the premiums are less expensive if they get it through their employer, instead.
The purpose of disability insurance is to replace at least some of your income if you are unable to work due to illness or injury. Usually, the insurance coverage will not kick in unless you are expected to be out of work for more than two weeks. It can pay you somewhere between 50% and 60% of your paycheck. Some would consider disability insurance to be a form of protection for your paycheck.
There are two different types of disability insurance. Short term disability coverage will cover you if you are going to be out of work for anywhere between three weeks and six months. Long term disability coverage is designed for claims that are expected to continue for more than six months.
Disability insurance can help an injured or severely ill worker to be able to continue to pay his or her bills while he or she is unable to work. Going without this form of insurance can be potentially disastrous for individuals and for families. What would you do if the person in your family who makes the highest income was suddenly, and without warning, unable to continue bringing home that paycheck?
Despite the importance of disability insurance, research from The Hartford shows that less than half of the workers in the United States have disability insurance coverage. The research found that 49% of U. S. workers have short term disability insurance. A total of 44% have long term disability insurance. Since last year, the amount of workers who had short term coverage dropped by 6%, and the number of workers who had long term coverage dropped by 3%.
The Hartford survey also found that only 25% of workers have a good understand of what disability insurance is, and how it can help them. This could be part of the reason why more than half of workers felt that they did not have a need for disability insurance coverage. The research also revealed that 75% of consumers make decisions on whether or not to purchase insurance based on their fears of experiencing an unexpected financial hardship.
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