With so many insurance products out there, and so many various terms, it can be difficult to decide and decipher which insurance products you need, and which you can skip. Many will make you feel as though you need every insurance product out there.just in case.but the truth is, often times simply saving the amount that the premium would cost you each month is far more beneficial and effective.
One time of insurance that you should not be confused about, and is a wise investment is disability insurance. This is especially important if you have a family, or someone besides yourself that counts on your income. Individual disability insurance is truly a basic concept, so don’t let technical jargon and confusing clauses mess you up. It is an insurance product designed to replace anywhere from 45-60% of your gross income on a tax-free basis should a sickness or illness prevent you from earning an income in your occupation.
Now this being said, it is important to understand that while that is the basics of what disability insurance is for, and what it does, every disability insurance policy from every insurance company is very different. Thus, when considering the purchase of disability insurance, don’t just look at price or premium, look at what it has to offer. It is worth repeating, this is not a product to simply shop for the most competitive rate.
In reality, to buy the cheapest disability insurance policy on the market is to throw money away. The odds of getting paid a monthly benefit under a cheap contract may be significantly lower than receiving benefits from a quality contract. So what should you do to find the best disability insurance at the best price?
– Look at the major features of a disability insurance policy (obviously some are more inclusive than others, so consider your lifestyle, occupation, etc. and determine which features are essential, important, less important, and not important, then choose a plan that meets your specific, individual criteria)
– Learn how to understand and how to read a disability insurance policy, or have an attorney or expert do it for you. (you won’t ever regret paying extra to make sure you are getting what you think you are getting, especially if you should ever have to make a claim)
– Get several quotes, and compare, compare, compare. (the best way to know you aren’t getting ripped off is to know what other people sell the same thing for.)
– Know whether or not it is for white, blue, or grey collar occupations, and what your occupation qualifies as. (if you get insurance coverage that does not apply to you, it is like flushing money down the table, so check it out, and don’t just take the agent’s word for it, find it in writing on the policy.)
– Get EVERYTHING in writing (if it is not written on the actual policy, not the brochure, not what the agent said, if it is not written it is not legally binding, so make sure everything you think you have is written into the policy, and that you understand it.)
Buying disability insurance means buying some financial security for your family should something bad happen to you and make it so you can’t work, whether that is injury or illness, protect your loved ones.