How does disability insurance protect your income and your future? We’re going to answer this question. You’ll see how beneficial these insurance product are and how they bring peace of mind.
You Break Your Ankles Falling off the Roof While You’re Cleaning it
You’re the main income earner in your home and now your doctor tells you that you can’t work for six weeks to three months; maybe even longer depending on how well you heal.
Short-term disability is a personal insurance product that will pay you monthly for up to three months. There’s a short time after applying before receiving your first payment – weeks to months. The payments you receive are tax free because you’re paying for them by yourself. If your insurance was through work and your employer paid, they would get a tax break.
Although it only pays a portion of your income, it will still help with the mortgage, food and monthly payments.
Six Months Later
You find out from your doctor there’s a problem with your left ankle and it has to be reset. You can’t work for another three months at least. Your short-term policy has run out.
If you purchased a long-term personal disability insurance, you can make a claim on these benefits. You can stay on these benefits until your leg heals or for the number of years stated in your policy. You’ve protected your income and your future is still bright.
You’ve probably had to make some financial changes. Rearranged a few things and cut some stuff from your budget such as entertainment. But, you still have your home, and food to eat. When you get better you can get back to your old life. Now is the time to focus on healing.
You’re Diagnosed With a Curable Cancer
Your doctor tells you that you have Hodgkin Lymphoma, a type of cancer that has a 90 to 95 percent survival rate if it’s diagnosed early. However, you still need chemotherapy and/or radiation treatments.
These will make you sick and you won’t be able to work. How long it will take you to recover is unknown – you have to see how your body responds to treatment. If you have critical illness, insurance you’ll receive a lump-sum payment to cover the cost of your personal expenses while you recover.
You’re Prognosis Changes
The payout on your critical illness insurance policy doesn’t depend on whether or not you survive. But you may want to use the money for something else if your cancer’s terminal.
After a few months you find out doctors didn’t get the cancer as soon as they thought. It is stage 4 and your chances of surviving are slim.
You and your family have always wanted to go on a trip or buy something but couldn’t afford it. Since you have stuff on your bucket list and the insurance payment, your trip is possible.
It’s important to note that personal disability insurance and critical illness insurance are two different products. Your critical illness benefit payment will not reduce your disability benefit.
To find out more about how you can protect your income and future with personal disability insurance please visit our website and contact us.