Disability Insurance Articles

Buying Disability Insurance Without The Help Of An Employer

2010-11-30

There may be more than a few instances where a worker could be buying disability insurance without the help of employer sponsored insurance. Some of these include those who are self-employed, those who work in a family business or even a general partner.

Disability insurance is provided by the employer for those who work in salaried or hourly positions, but not for those mentioned above. For the self-employed worker and others, the burden of disability insurance is their responsibility. Disability insurance protects your business, your family and your assets should you become disabled as a result of long-term illness or injury. This is elective coverage that is designed to replace approximately half of your gross income on a tax-free basis. This type of insurance works differently than other types of insurance. While employee sponsored insurance will cover most accidents or injuries that occur on the job, disability insurance for the self-employed and others in that category can vary a great deal depending upon the type of work you are involved in.

For instance, policies for blue collar workers can be more expensive because of the nature of their work. Blue collar workers perform manual labor such as factory work or landscaping. In this type of labor, accidents are typically more frequent and injuries more severe. White collar jobs usually include less risk because work is performed in an office environment where risk is minimal.

Just as in traditional health insurance policies, disability insurance will require a physical exam. If an illness or pre-existing injury is discovered, it will be excluded from coverage. When shopping for this type of insurance, there are many crucial items to be on the look-out for. It's best not to bargain-shop when purchasing disability insurance.

Though employer sponsored insurance can often be fairly similar regardless of the nature of the business, an individual disability policy can vary a great deal from one insurance carrier to the next. It's important to know exactly how much and what type of coverage you need in order to protect your family and your assets.

Insist on a reputable carrier with a solid history of paying claims on a timely basis. Disability insurance premiums are a waste of money if your carrier refuses to pay once you file a claim. It's important to deal with a company you can trust. Working with your underwriter, you can negotiate the best policy for your money but any sound policy should include paid sick leave, as well as short-term and long-term disability. Statistics prove that a worker is injured every second in America. Without disability insurance, your home and other assets could be at risk.