1. Health

Disability Insurance

By

Updated January 01, 2012

When planning your health insurance coverage you need to consider purchasing a disability insurance policy, especially if you are self employed. People too often miss this option when getting insurance because they are so certain that becoming disabled will never happen to them. The risk of disability is higher than most people realize, and Workers Compensation or Social Security Disability Income alone won’t cover all of your expenses.

The Risk of Disability

According to Insurance.com, there is a twenty percent possibility of a long term disability occurring to a man, aged 30, before he reaches the age sixty-five. For women at 30 years of age, the risk is lower, about thirty three percent, but that is still a one in three possibility. Of these people who may find themselves disabled for over six months, half will still be disabled five years down the road. These statistics are way too high to neglect proper insurance coverage.

What Is At Risk

More people will lose their homes because they have not purchased disability insurance than will those who will lose their homes to fire. The average worker does not think about how they will pay the bills should they become disabled. Disability insurance will offer you protection, whether it is a short-term injury or a long-term injury that leaves you permanently disabled. Other statistics from Insurance.com quote heart disease and back injuries as the two events most likely to cause a person’s disability.

Worker's Compensation vs. Disability Health Insurance

A disability can be caused by injury or due to genetic or chronic disease, such as lupus or rheumatoid arthritis. A disability renders a person unable to continue their lives as they had in the past. One major worry is if this limitation is the loss of employment. Typically, if you work full time and pay into Workers Compensation, this will assist you in paying for your expenses related to the injury if you are injured on the job. However, not all disabling injuries occur on the job. This is where disability insurance comes in.

It is important to remember that disability insurance is not solely for someone who has a dangerous job. You do not need to work with explosives or in the coal mines to have an accident. You can walk across the street and be hit by a car, slip on the ice or fall down your front stairs. Anything can happen, and if it is disabling, it will completely change your life. In addition, it affects how you can take care of yourself, your family and your financial responsibilities.

Disability health insurance coverage from an employer often is very restrictive. These polices will not likely cover you for anything that does not happen in the line of work at your workplace. On the other hand, purchasing a disability insurance policy will cover you by paying the mortgage, bills and health care costs. Individuals may also choose supplemental insurance policies to add coverage to their existing policies to pay for unexpected expenses in the event of a disabling accident.

Where to Find Disability Insurance

Individuals can purchase disability insurance policies as well as a variety of supplemental insurance policies through their employer or human resources offices as well as from independent insurance agents. Many insurance companies can provide insurance quotes online, and then a policy can be secured after payment of the current policy period, signatures are collected and any required blood tests have been completed.

Don’t wait to get a disability insurance policy because it cannot be purchased after you have become totally and permanently disabled.

©2014 About.com. All rights reserved.