I’m sure you know of someone in your life that has dealt with an unexpected injury or sickness and has been unable to work for weeks, months, even years because of it.
Disability and income replacement policies are specifically designed to financially protect you in these events. They pay a predetermined amount every month to you, to help cover bills or other things you need.
Disability and income replacement rates are usually determined by 3 things:
1). How much coverage you want per month
2). What your occupation is
3). And how long you want the coverage to be for
The amount of coverage that you want depends on the insurance carrier, but most carriers will cover your monthly salary at 60%
Rates are determined by your occupation, the more dangerous the occupation, the higher your chance of injury, the higher your rate.
Coverage lengths, or how long you want the policy to pay you monthly is usually in 3 month intervals up to 2 years in most cases.
It is important to mention that most carriers if not all, will not pay out an income replacement or disability policy for pregnancy and maternity care. Those types of policies are best found through your employer.
Like most insurance policies there is no coordination of benefits with other policies. So these policies will work independently of a worker’s compensation claim or other accident coverage, allowing you to maximize the amount of money that will be paid to you!
Hopefully this was helpful and you now know a little bit more about these disability and income replacement policies.
If yo have any questions, please contact us today.