Are You Underestimating Your Need for Disability Insurance

Every profession has its hazards and long-term disability is one of these. As per data, one out of three individuals may lose their ability to discharge duties before the age of 65. Surprisingly, there is a severe lack of awareness among professionals and employees about the possible long-term disability concerns.  

Understanding disability

There are extremely disturbing statistics about the general awareness of disability. Only about one in ten individuals are capable of estimating the huge costs of short-term or long-term disabilities. Most disabilities do not have any relation to accidents. Ninety percent of the disability cases are because of illnesses. 

Long-term disability insurance is always a better choice because a short-term disability plan may not offer coverage for more than six months. It is not difficult to build cash reserves for six months and therefore you need not invest in premiums for short-term disability plans. In contrast, it is practically impossible to create funds to maintain your lifestyle for years if there is any long term disability. Hence there is a need for buying a plan to manage long term disability. 

Basics of disability coverage

Before you consider contacting any broker agent advisor to discuss disability insurance, you need to know the distinction between ‘any occupation’ and ‘own occupation’ disability coverage.

 In the ‘own occupation’ disability plan, you stand to collect disability benefits if you are unable to discharge duties of your occupation. This means that the benefits are not affected if you are earning through any other occupation. 

However, the ‘any occupation disability restricts the individual from taking up any other job than his or her own occupation to earn money. It means that the person will be sitting idle even if the individual is capable of earning through any other means. 

Knowing where do you fit in

Specific groups of individuals can opt for relevant disability policies. It is vital to understand the coverage and other aspects of such plans before making any decision. Following plans explain the individual group policies:

• Self-employed with no group disability coverage– These individuals suffer the maximum if there is no or insufficient disability coverage. It may help to go for a Long Term disability policy even though these are slightly expensive. Prepare to spend at least three percent of your income for the payment of premiums. Investigate and buy a policy that allows a waiting period of 26 weeks with benefits for five years. 
• Employer-sponsored group plan– Availability of employer group plan is the most beneficial scenario. Employees of the Government can get the benefits after exhausting their sick leave in the event of any disability.

Disability insurance is, unfortunately, an underrated subject by most professionals like doctors, dentists, and employees. Speak to a knowledgeable broker advisor from MGIS to know what would be the best plan to suit your individual profession. MGIS Group specializes in long-term disability plans for healthcare professionals. The group offers industry-leading Broker Agent Advisor services by understanding the unmet needs of physicians.