Disability Insurance: Four Rules For Coverage

You can ask any financial advisor what is the most often overlooked type of insurance that people should have, and almost all will tell you it's disability insurance. Many people ignore disability insurance in comparison to life insurance. However, the problem is that there is a much higher probability that you will have a long-term disability than there is dying before the age of 65. In fact, if you are between the age of 35 and 65 there is a 50% chance that you have been, you are, or you will face a long-term disability. Below are some of the rules of thumb you want to follow when trying to find good disability insurance.

#1: It Should Cover At Least 60% of Your Income

Good disability insurance will cover at least 60% of your income. Anything on top of that is great, but anything below that may not be enough to get you through a rough time. Generally people live with so much debt, that anything less than 60% isn't adequate protection. The exception would be if there are two people working and one becomes disabled.

#2: It Should Have an "Own Occupation Policy"

Many times these disability insurance policies have a clause that requires "any occupation." This is generally referring to the fact that you may be required to change your line of work for your insurance coverage to pay out to you.

#3: Should Have a Lengthy Benefit Period

Another trick that many disability insurance companies will play on you is that they will have a high payout in terms of percentage of your income, but you might get the money for far less time. Which would you rather have: $700 per month for 6 months or $650 for a year? These are the factors you have to look at. Generally, you should always go for the lengthier benefit period regardless even if you have to take a decreased amount per month.

#4: Short Waiting Period

A lot of times what these insurance companies will do is make you wait a lengthy time before you ever receive your benefits. So while the benefit period may extend to a year, you have to wait 6 months before you ever get your first check. Generally, shorter waiting periods are more expensive and this may have to be determined by your wallet. However, it is something you should be aware of before picking a disability insurance provider.

By: Brian Hill

Article Source: http://www.directorys.uniquearticles.info

Looking for cheap insurance? Get free insurance quotes Corey Landis writes on the topics debt management, reducing debt and how to buy foreclosures.

Please Rate this Article  Not yet Rated

More Unique Articles From - Home | Business
Sign Up for a free account or learn more.
Submit Articles
Member Login
Top Authors
Submission Guidelines
Ezine Notifications
Articles RSS
About Us
Link to Us
Contact Us
Privacy Policy
Terms of Service
Popular Articles

Copyright © 2010 Unique Article Directories -- All Rights Reserved Worldwide

Accounting | Acne | Adsense | Advertising | Aerobics | Affiliate | Aging | Alternative | Articles | Attraction | Automotive | Beauty | Break-up | Business | Business-Management | Cancer-Survival | Career | Cars-and-Trucks | Cheating | Computers | Computers-and-Technology | Cooking | Culture-and-Society | Ebay | Environment | Etiquette | Family | Family-Concerns | Finance | Finances | Fitness | Food-and-Drink | Free-Tools-and-Resources | Health | Hobbies | Home | Home-Management | Humor | Inspirational/Motivational | Internet | Internet-Marketing | Jobs | Legal | Marketing | Medical-Business | Medicines-and-Remedies | Music | Opinions | Personal-Development | Pets-and-Animals | Politics | Psychology | Publishing | Recreation-and-Leisure | Relationships | Religion | Religion-and-Spirituality | Science | Self-Help | Short-Stories | Speaking | Technology | Wellness-Fitness-and-Diet | Womens-Interest | Writing |

 

Top Directorys Top Article Directory Sites Top 100 Internet Marketing Sites Article Directory Toplist Top Modern Musclecar Sites Top Article Directory Politics Politics Topsites List - Vote Now Anybodythere's Paranormal Top Sites TopTipSpot Top Sites Top + Le top des tops Top Blogs - Increase SEO of Your Blog, Blogging Resources Top Sites Cat™ - A Catalog of Top Sites by Rank

Powered by Article Dashboard