Disability insurance is a type of coverage that protects you in the event a life-limiting illness or injury prevents you from working and earning a steady income. It provides financial support and helps prevent or minimize the need to access funds from savings accounts, retirement plans, investments, or other resources. If you’re considering this option, here’s all you need to know about it to make an informed decision. 

How Disability Insurance Works

As with any type of insurance plan, the policyholder pays a regular premium in exchange for coverage. When the insured individual becomes unable to work, their coverage replaces a portion of their wages.

Your benefits will depend on your policy, but most have elimination or waiting periods, which specify how long you must wait before the benefits are activated. The payout amounts and periods are also capped by the policy.

Long-term disability insurance is often purchased by private individuals, while short-term coverage is sometimes offered by employers.

Why You Need It

While this isn’t a comfortable prospect to consider, optimal health is not a guarantee for anyone. Receiving a diagnosis of a serious illness or sustaining a severe injury can change one's life and livelihood. Disability insurance offers financial safeguards if you ever find yourself in such a situation.

Even if your employer provides you with short-term disability coverage, you will still benefit from purchasing long-term insurance. This is because short-term coverage often has a short benefit period, which may be less than a year.

If you’re paying off loans, such as mortgages and student debt, this type of coverage will give you the peace of mind of knowing you will always be able to meet your commitments, even if your health takes an unexpected turn.

To explore your options for disability insurance, contact the Ron Nall Insurance Agency. Serving the Andalusia, AL, area, Ron and his team will make sure you find the coverage you need and deserve. From life to renters insurance, they carry policies designed with your goals in mind. Call (334) 222-3106 to request a quote or visit their website to send them a message.