{"id":1621,"date":"2008-02-27T05:00:04","date_gmt":"2008-02-27T13:00:04","guid":{"rendered":"http:\/\/getrichslowly.org\/blog\/2008\/02\/27\/the-disability-insurance-maze-how-to-select-and-purchase-a-policy\/"},"modified":"2023-10-04T15:24:36","modified_gmt":"2023-10-04T21:24:36","slug":"the-disability-insurance-maze-how-to-select-and-purchase-a-policy","status":"publish","type":"post","link":"https:\/\/www.getrichslowly.org\/the-disability-insurance-maze-how-to-select-and-purchase-a-policy\/","title":{"rendered":"The disability insurance maze: How to select and purchase a policy"},"content":{"rendered":"

This article was written by Suzanne S.<\/strong> It’s very<\/span> long, but it’s about an important topic. You may want to bookmark it for later reading.<\/em><\/p>\n

Personal finance isn’t just about growing your finances \u2014 it’s also about protecting what you have. Most experts advise insuring your home, your car, your health and your life. What many of us never get around to doing is insuring our earning power.<\/p>\n

According to The Wall Street Journal<\/em> in a December 2006 article \u201cThe Growing Appeal of Disability Insurance\u201d:<\/p>\n

Even consumer advocates who are often critical of the insurance industry for pushing unnecessary products (such as life insurance for someone with no dependents) say that a disability policy can be a smart buy. \u201cDisability insurance would probably be the one insurance product that is undersold,\u201d says J. Robert Hunter, insurance director for the Consumer Federation of America<\/a>.<\/p><\/blockquote>\n

\"\"If you have benefits through your employer, you are probably smugly thinking that you are already covered. Check again. You likely have a false sense of security and don’t have coverage. If you do have coverage, it likely is for short-term only (for example, just for five years), or the benefits paid are not enough. What you need is long-term coverage, until social security kicks in (at age 65).<\/p>\n

If your employer is paying the premium, you will be taxed on the benefits, so factor that into your calculations. According to the Bureau of Labor Statistics, less than a third of all workers in private industry have long-term disability insurance. Only 40% of managerial and professional workers do. What’s your situation?<\/p>\n

If you have a coverage gap, or if you are self-employed, you need to find your own disability insurance. Unfortunately, it’s not easy. In fact, it’s been one of the most confusing processes I’ve ever undertaken.<\/p>\n

<\/span>Why Do You Need Disability Insurance?<\/strong><\/span><\/h2>\n

During your working years, you are more likely to face disability than death. Nearly one out of every three workers will suffer a disability lasting three months or more at some point during their career, according to the Life & Health Insurance Foundation for Education<\/a> (LIFE).<\/p>\n

And disability isn’t a one-time event. The repercussions can continue for months \u2014 sometimes years \u2014 impacting the financial security of you and your family. If you can’t do your job, money isn’t coming in, and the bills start piling up. As financial guru David Bach puts it: \u201cWhat this means to you and me is that the greatest threat to our ability to finish rich<\/a> may be the risk we all face of serious injury or illness! And the younger you are, the greater your risk actually is.\u201d<\/p>\n

Also, according to The Wall Street Journal<\/em> article:<\/p>\n

Americans are recovering and living longer from accidents and diseases such as cancer, but they aren’t always able to go back to their jobs. And some research, such as a recent Hartford Insurance Co. study, suggests that rising rates of obesity and diabetes are leaving workers disabled at younger ages than in recent past. Cancer was the number one cause of long-term disability last year at the largest disability insurer, UnumProvident, the company says. Other top causes include complications of pregnancy, musculoskeletal diseases, back injuries and heart disease.<\/p><\/blockquote>\n

<\/span>What Should You Look For in a Disability Insurance Policy?<\/span><\/h2>\n