Types of Disability Plans
If you get an illness, injury, or accident that prevents you from working, providers of disability insurance will give you a percentage of your income as compensation. However, disability insurance policies vary from one brand to another. All companies will pay you a different proportion of your income. It also comes with different benefit periods and elimination periods. The term elimination period refers to the length of time that you will have to wait before your benefits kick in. The benefit period is the length of time that your benefits will be payable. It all depends on the policy that you are taking and extent of disability.
The start date of most policies ranges from 30 to 120 days after the occurrence of the disability. Coverage mainly focuses on injury and sickness and your plan will not change without your authorization unless you get to 65 years old.
Experts will tell you that disability insurance is a must for all individuals. You can be in a group plan with your employer, and you may decide to take an individual policy for yourself. The market has several products, and you need to understand the differences between them. Some of the common types of disability plans include group disability plans, individual disability plans, and creditor disability insurance. A reputable Florida LTD lawyer will help you to process the claim irrespective of the type of policy that you have.
Group Disability Plans
This disability insurance policy is the most common in the world. You will always get this coverage through the employer. The lowest tier of this coverage focuses on affordability which is highly beneficial. However, pay-outs and benefits tend to vary drastically. However, most group covers don’t significantly cover your income. Therefore, it can be challenging when there comes a time that you can no longer work. These covers also have annual and monthly caps on what you can get in compensation. You have to read group covers carefully because you may end up getting something entirely different from what you thought.
Individual Disability Plans
If you don’t like your group plan or don’t have one, you can choose to go for the individual disability plan. In the absence of a group, the pricing will be different, and the company will tailor it to your unique needs and situations. It can either be a drawback or a benefit. These plans will generally be cheaper if you are healthy, young, and do a less risky job. Young people can also get plans that meet their budget, wants and needs more efficiently.
Creditor Disability Insurance
Currently, we have disability insurance attached to mortgages, leases, and car loans among other lines of credit. The creditor disability insurance allows your financial institution to buy a group policy, and then you become part of the policy upon taking a loan with the institution. The institution will pay the loan for you instead of sending you the money directly. Generally speaking, group plans tend to be less expensive. However, their terms are not as good as the ones that you get from the individual cover. Therefore, you need to be careful when choosing between these covers to make an educated decision.