A lot of people never consider the fact that they might suffer a disability. The sad truth is that every American has a chance out of five to suffer disability, so says the U.S. Census Bureau. According to survey conducted by the same bureau in 2005, 9,015,029 Americans between the ages of 21 and 64 have a disability while 12,417,527 between the same age have two or more disability.
American Council of Life Insurers said that a 35year old is six times more likely to suffer a disability than die before he/she is 65. This is therefore why long term disability (LTD) insurance is very important.
Cancer is the No 1 cause of Long Term Disability. Over the years, Cancer has led to over 12% of LTD claims and the most common types are breast, colon and prostrate cancer.
The most traumatic thing about having a disability is being dependent on others. What’s worse than that? It is having to depend on others for your upkeep (financially). You may survive a few weeks without an income by relying on your savings but the longer you stay without an income, the harder it is for you, because the savings can only go so far. Only very few people can go without an income for an extended period.
LTD insurance policies provide income for you for a period of two years, five years or until you retire. Although you can get LTD insurance as an individual, most people who have it got it through their employers.
Whereas Short Term Disability(STD) insurance covers you for a period of three to six months, LTD takes over from where it stops, extending to years depending on your policy.
The mode of payment of premium and disability benefits differs according to how you pay. If you pay your premium with after-tax, dollars (probably by your self) then your disability benefits would be tax free. But if you pay your premium with after-tax dollars (probably paid by your employer) then your disability benefits would be taxed.
Finally, before you make up your mind to buy LTD insurance from any company, make sure you take out a little extra time to compare the prices and services offered by a wide range of insurance companies.
Here are great pages for health insurance quotes…
InsureMe Health Insurance Quotes
Health Insurance Quotes
Chisomeje Odimba writes for Quality-Insurance-4-Less.
Article Author :Chisomeje_Odimba
Last 5 posts in disability insurance
- Contractor Insurance - June 10th, 2009
- Should Everyone Be Obligated to Buy Health Insurance? - March 16th, 2009
- Insurance Against Illness? - March 10th, 2009
- Preventive Health Care Benefits - What Benefits Does Your Insurance Cover? - January 2nd, 2009
- Where Does Health Insurance Come From? - January 2nd, 2009
Tags: disability insurance, health insurance, insurance quotes