Disability insurance protects you if you experience an injury, illness, or condition that prevents you from working. More specifically, this coverage ensures that you’ll continue to receive income and benefits while you cannot work. Below is more information about what you should know before purchasing an individual disability policy.

4 Aspects to Consider When Buying Disability Insurance

1. Monthly Premium 

Monthly premiums vary across providers and often depend on your age, occupation, and health. Younger people tend to pay lower premiums, since they have a lower risk of breaking bones and contracting illnesses. Professions that are higher risk—such as building maintenance and auto repairs—often raise premium amounts, as injuries are more likely to occur. Preexisting health issues can also increase the cost, since you could be more likely to get sick. 

2. Add-Ons

Cost of living benefits adjust the amount of your insurance payouts according to increases in goods, services, and rental fees during your time away from work. You may need to add them as a rider to your policy to ensure you’ll receive wages that are commensurate with changes in the cost of living. 

Additionally, consider adding a premium waver to your policy. This will postpone your monthly premium while receiving disability benefits, allowing you to save money for other essentials.

3. Transferability

When you have disability insurance through an employer, you will likely lose coverage if you begin working with another company. One of the most significant benefits of purchasing disability coverage as an individual is that it will continue to provide the same protections, even if you change jobs. This allows you to maintain coverage during transition periods between jobs, as it may take some time for your new benefits to begin.

4. Residual Benefits

If your injury or illness allows you to continue working part-time, residual benefits will provide money that you would lose due to lost hours. However, there may be restrictions, such as a maximum monthly payout that is a percentage of your pre-disability income. This is because your provider assumes you will continue working whenever possible.

When you need disability coverage, contact David R Johnson Insurance Agency Inc. in Beech Grove, IN. They provide homeowners, renters, auto, and term life insurance to business and personal clients throughout the suburban metro area of Indianapolis. Call (317) 782-8858 to request an insurance quote and ask about bundling policies.