A disability can happen to anyone. It doesn’t matter if you’re a low-income worker, an executive at a Fortune 500 company, or the CEO of a start-up. The fact is that disability claims have been popping up more often and it’s important to be aware of what you need for your family should something unexpected happen.
In this post, we are walking you through some things that a person should consider before purchasing disability insurance—from their current health plan to the possibility of long-term care and disabilities are what people may have no warning about but suddenly need help with. Although there are many disability insurance companies, it is super-essential to consider certain things before buying disability insurance. Here are some of those factors.
- Assess your risk
The first thing you should consider is the risk of becoming disabled. For most people, it’s only about 18 percent, but for those over the age of 64 and for those with a family history of early-onset diseases like heart disease, depression, or cancer—the chance may be twice or even three times greater. These people are especially at risk because their bodies might not be able to handle the damage that these illnesses can cause.
- Apply when you are healthy
Most policies do not cover the costs of the first 12 months of disability, but they do cover up to 36 months in most instances (not all companies offer that coverage). This means that before you actually get sick and can’t work, it’s important to have a plan for when you’re healthy. The best time to get disability insurance is when you’re in your twenties and thirties before you develop any long-term illnesses or conditions.
- Consider stacking, if you have an older policy
Most insurance companies do not require that you continue to make your monthly payments while you’re retired. However, they will make you continue to pay the premiums in case it’s needed in the future. But what if something happens and you suddenly want to return to work? It’s possible that if an older policy is used, a person could be forced out of the labor force for at least a year or two.
- Drop your policy when you hit retirement age
In order to make sure that you are not paying for a policy that you may no longer need, consider dropping the policy and picking up another one at retirement age. This will avoid any payout occurring after the person is no longer able to earn income.