What is a disability insurance?
Disability Insurance, often referred to as DI (disability income insurance) is a type of insurance that protects your income in the event of a disability. We often take simple blessings of life for granted, one of which is our ability to work and earn a living. Disability Insurance protects against the loss of income due to an unforeseen occurrence of any disability.
Under Disability insurance, you will be provided with a monthly payment benefit if you are unable to work due to a disability.
Commonly there are two types of disability insurance policies:-
Short-term disability Policy: This typically will cover a policyholder for up to one year some may even extend longer than one year.
Long-term disability Policy: This can range from 2 years to the retirement age
In case of group long-term disability insurance, the employer pays the insurance premiums, with no contribution expected from employees. Typically both types of group disability coverage pay benefits equal to up to 60% of an employee’s salary (the percentage may be slightly higher or lower, depending on your plan).
The average cost of Short Term disability insurance is typically between 1 percent and 4 percent of an employee’s annual income.
The cost of a Long Term disability policy – especially an individual policy – can vary greatly based on benefit length and amount, age, gender, occupation, and policy riders. One rule of thumb: You can easily expect to pay anywhere between 1 to 3 percent of the annual salary.
Let EZ Online Services help you choose a policy that will fit your needs. Protecting all your assets, whether business, personal or both, is our primary goal. An insurance policy chosen by an expert can lessen the impact of some of life’s most common, yet unforeseen accidents.
Give us a call today for a no-obligation chat and we will understand your unique situation and then suggest a plan that works for you.
