There are many benefits you can gain from eligible employment, including health insurance, access to a 401k and more. One of these benefits, that isn’t always utilized, is disability income insurance. Here are three benefits of disability income insurance.
1. Having an Income Safety Net
The main reason to make sure you have disability income insurance is to have an income safety net in the event you become too injured or ill to work. If either of these situations happens to you, this type of insurance will help ensure you’re able to maintain your standards of living, including paying bills, buying groceries and avoiding burning through your savings while you recover.
2. Covering Medical Bills
Not only can this insurance provide you with a safety net, but it can also help you cover any medical bills your regular health insurance provider can’t or won’t cover. You may be able to get this type of coverage from your employer or as part of a government worker’s compensation program. Remember, depending on your plan, your medical bills may only be covered for accidents or injuries that occur at work.
3. Accessing Two Types of Insurance
There are two main types of disability income insurance: short-term and long-term. Short-term disability tends to cover lost wages if an employee needs to miss work for a relatively short amount of time, typically a year or less. Long-term disability refers to plans meant to cover employees who will be unable to work for a year or longer. In some cases, they may cover employees for life. Typically, long-term disability coverage begins after short-term coverage runs out.
Some jobs are more likely candidates for disability income insurance to be important, particularly those requiring manual labor or work in dangerous conditions. However, having income insurance for desk jobs is just as important, due to certain illnesses or non-work-related injuries that can impact your income.