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All You Ever Wanted to Know About Insurance

What Is Disability Insurance? And What Does It Cover?

If you were injured and could no longer work, what would happen to you and your family? How would you pay your bills? That is where disability insurance comes in. It is protection for your ability to work, earn a living, and support your loved ones.

What is disability insurance? Disability insurance is there to provide income if you become disabled and can no longer work. When you buy disability insurance and pay the monthly premium, your insurance company agrees to pay a portion of your monthly income in the event of a disability that prevents you from working permanently or for some time. Living on disability insurance won’t make you rich, but it will help you keep food on the table. 

What Does Disability Insurance Cover?

Disability insurance covers any injury or illness that limits your ability to work. This is more common than you might think: the Social Security Administration predicts that about 1 in 4 adults will become disabled before retirement.

While disability insurance does cover accidents that permanently affect your ability to walk, see, hear, talk, and use your hands, it also covers illness. In fact, 90 percent of disability claims stem from illness rather than physical injury. The most common include:

  • Arthritis

  • Back pain

  • Cancer

  • Depression

  • Diabetes

  • Heart disease

  • Stroke

An injury or illness does not need to be connected to your workplace to be covered by disability insurance. So if you are disabled by a mountain biking accident or have a heart attack, your disability insurance will still cover you.

Where Can I Get Disability Insurance?

Your employer may offer disability insurance. If not, you can purchase disability insurance through private insurance companies.

Who is Disability Insurance Offered To? Who Can Get Disability Insurance?

Anybody can—and probably should—get disability insurance. Employers in high-risk jobs, such as firefighters, police officers, construction workers, high-rise window washers, and anyone who works with heavy machinery, are more likely to offer disability insurance. People working in high-risk jobs may need to pay higher premiums. But disability can happen to anyone, whether you are on or off the clock. So, it is worth looking into as a safeguard against losing your ability to support yourself and your family.

Is It Similar to Health Insurance?

Health insurance protects your well-being, offering preventative care, and helps to pay for doctor visits, treatments, and prescriptions as you need them. Disability insurance protects your ability to earn an income. With both, you select a plan and pay a premium to offset your personal financial risk. You’ll likely use your health insurance regularly for ongoing health care, while disability insurance will help you pay the bills in the event of a disability. 

Want to learn more? Contact Insurance Center Associates for a quote.