• About
  • Mortgage Basics
  • $40K Challenge
  • Aunt Doris
  • Grandfather Says
  • Privacy
  • Archives
  • 100 Words

Len Penzo dot Com

The offbeat personal finance blog for responsible people.

An Overview of the 4 Basic Types of Disability Insurance Coverage

By Sabado Domingo

speeding ambulanceIf you work in a highly risky environment where sustaining serious injuries is the reality of your everyday life, you should no doubt get disability insurance. What if you do not? Most of us rely on a steady income. When you are in good health, imagining a situation where you will no longer be in a position to earn can be difficult. Nevertheless, it is important to admit that disabilities are a reality of life and prepare for them. Disability insurance covers you in instances where you can no longer provide for your needs because of illness or physical injury.

Today, you can even buy insurance online. For example, Breeze Disability Insurance is just one company that offers multiple types of coverage at very competitive prices. Most women use disability insurance to cover pregnancy and related complications. Below are the basic types of coverage you can expect from disability insurance.

Total disability

Total disability renders you completely unable to work. If you have suffered a total disability, your insurance will pay you monthly benefits until you recover, or when your coverage expires. The pay you get should be at least 60% of your pre-tax income or close to your previous salary. You may have to take extra insurance if your living conditions go up. If you have been receiving pay for total disability and can resume part-time employment, some insurers will offer you partial disability benefits for the following six months.

Partial disability

If you’re partially disabled, then you’re in a position to work — but with a partial loss of income, responsibilities, and efficiency. In this case, you have to provide evidence of medical treatment which shows that you can no longer benefit from medical care. The monthly payments you receive will be reduced by the percentage of loss suffered. Other insurers can pay you the full amount of benefits for a partial period of time.

Presumptive disability

Presumptive disability covers for extreme injuries that could make the insurance company presume that you may never be able to work again. These include loss of sight in both eyes, hearing in both ears, loss of speech, and loss of limbs. Typically, for most insurance covers, you would have to wait the 90 days elimination period before the insurance company can pay your benefits. They give you that time to recover and resume work. In this case, you begin to receive payments immediately.

Home Modification

Some disabilities may require you to alter your home so that you can adjust to the new conditions of life. Such adjustments include making it easy for you to do things like move around in a wheelchair or move up and down the stairs with ease. You may need to adjust knobs, sinks, and doors so that they are easy to turn or install sound-proof material to create a serene environment. You can get an insurance company that offers changes to your home as part of your policy coverage.

If you have beneficiaries, you can benefit from the survivor benefit which pays a lump sum amount to your beneficiaries in case you die after a year of receiving benefits. Note that disability insurance may not cover pre-existing illnesses and some occupations such as authoring, bartending, entertainment, armed forces, athletes, pilots, self-employed artist, and unemployed students. If you qualify for disability insurance, ensure you buy one to protect your income.

Photo Credit: ell brown

October 3, 2019

Trackbacks

  1. Expecting the Unexpected: Managing Finances When You Become Disabled – Len Penzo dot Com says:
    December 6, 2019 at 4:15 am

    […] to unexpectedly take temporary or full-time disability from your current working situation can be challenging on many levels, especially financially. […]

The Question of the Week:

If the government eliminates cash, to what degree will that impact your freedom?

View Results

Loading ... Loading ...

Recent Posts

  • Black Coffee: Par for the Course
  • The Continuing Chronicles of Elaine, Part 7
  • Three Reasons Why Credit Unions Are a Great Choice for a Car Loan
  • Bad Habits That Make You a Target of Credit Card Fraud
  • Lessons In Tax Law: Why You Should Never Try To Bribe The IRS
  • Why Paying Off the Mortgage Early May Be a Big Mistake
  • Black Coffee: Welcome to the Fun House
  • A Georgia Teacher Shows Why It Always Pays to Read the Fine Print
  • Why Extended Warranties Sometimes Do Make Sense
  • 10 Ways to Get the Most from Your Next Business Conference

Disclaimer

This site is for informational and entertainment purposes only, and the content herein should not be mistaken for professional financial advice. In fact, making investment decisions based on information published here, or any other website for that matter, is more than unwise; it is folly. This website accepts advertising in the form of monetary and other compensation; as such, topics of discussion are occasionally influenced by these advertisers. Sometimes, an article may also include affiliate links, meaning, at no additional cost to you, this blog earns a commission if you click through and make a purchase (for example, as an Amazon Associate I earn from qualifying purchases). Remember, you and you alone are responsible for the decisions you make in life, so please contact an independent financial professional for advice regarding your unique personal situation.

Sign up for the weekly Len Penzo dot Com newsletter
Len Penzo dot Com Delivered Weekly
Join more than 40,000 readers and fans who enjoy personal finance and macroeconomics with an offbeat twist!
Invalid email address
Thanks for subscribing!

Popular Now:

  1. 1. Scientists Say This Clever Trick Can Help You Break Your Overspending Habit
  2. 2. 4 Online Shopping Mistakes You’re Making and How to Avoid Them
  3. 3. When Is the Right Time to Use Your Wealth Insurance (Gold & Silver)?
  4. 4. Dear Friend: Here Are 41 Reasons Why I’m Not Lending You the Money
  5. 5. Home Repair Scams: Here Are the 9 Biggest
  6. 6. Trying to Save Money on Gas? Here’s Proof That Driving Out of Your Way Rarely Helps
  7. 7. How I Fought My Parking Ticket and Beat City Hall
  8. 8. Are You Frugal or Cheap? Here’s How to Know the Difference
  9. 9. Historical Gold & Silver Benchmarks for Wages and Commodities
  10. 10. 4 Good Reasons Why Some Quarters Are Painted Red

All-Time Most Popular:

  1. 1. 19 Things Your Millionaire Neighbor Won’t Tell You
  2. 2. Dear Friend: Here Are 41 Reasons Why I’m NOT Lending the Money
  3. 3. Why Your Expensive Luxury Car Doesn’t Impress Smart People
  4. 4. If You Can’t Live on $40,000 Annually It’s Your Own Fault
  5. 5. 21 Reasons Why Corner Lots Are for Suckers
  6. 6. 4 Smart Reasons Why College Isn’t for Everyone
  7. 7. 18 Fast Facts About Social Security Numbers
  8. 8. My Ketchup Taste Test: Upset! Guess Which Brand Topped Heinz
  9. 9. Why I Prefer a Spreadsheet to Track Expenses and Manage My Finances
  10. 10. Here’s a Simple Trick for Getting Credit Card Interest Charges Waived

Copyright © 2023 Len Penzo dot Com · All Rights Reserved · Designed by Nuts and Bolts Media

© Len Penzo dot Com 2008–2023