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Disability Insurance in Monrovia, MD

Life is full of unexpected incidents that can impact your future. These incidents are impossible to predict, but you can prepare for them with proper insurance coverage. One way to prepare for life’s unexpected moments is through obtaining disability insurance.

What Is Disability Insurance?

Disability insurance is a type of coverage that may help replace a portion of your income if an accident or illness prevents you from working. It can provide essential financial protection that may help you cover your expenses.

The following are the two main types of disability insurance:

1. Short-term disability insurance—This may provide income replacement benefits for a relatively short period that you may be unable to work. Typically, short-term disability insurance has a waiting period of zero to 14 days and a maximum benefit period of two years.

2. Long-term disability insurance—This may provide income replacement benefits for an extended period you may be unable to work. Waiting periods typically range from several weeks to several months, while maximum benefit periods generally range from a few years to the rest of the insured’s life.

Is There a Limit on Disability Insurance?

Disability insurance is designed to replace a percentage of one’s income. Insurers typically have a limit on how much of one’s income they will replace to reduce fraudulent claims. Group disability insurance policies will typically only cover a certain amount of your earned income; however, an individual disability policy can be obtained to help cover the gap. A disability policy may be available through an individual’s employer or purchased directly from an insurance broker.

Who Is Eligible for Disability Insurance?

There are a few different disability insurance coverage options, including group coverage through your employer, short-term disability insurance, long-term disability insurance or supplemental disability coverage. Each of these coverage options may have different eligibility requirements. Most people will be eligible to obtain a disability policy; however, coverage may depend on the details of the situation. For example, a disability insurance policy may exclude coverage for self-inflicted injuries or injuries sustained while committing a crime.

How Much Disability Insurance Do I Need?

To decide how much disability insurance you need, you should consider how much coverage would be needed to maintain your current standard of living while also exploring the limits of what an insurer is offering. Contact Lyceum Insurance Services today to discuss your disability insurance needs. We can help make coverage recommendations based on your unique situation.