Imagine this. You are at work when you suddenly slipped. You fell hard. Your broke your back. Ouch! Now you can’t come to work. Without salary or wages, how would you go by? That’s where disability insurance steps in. Disability is something most people would like to ignore if they can. Yet your chance of becoming disabled has a bigger chance more than you would realize. Many have referred to disability as necessary evil, although most would say they would just take the “necessary” out and just leave the “evil”.
So, why have disability insurance? The answer is simple. You are just transferring the risk from yourself to someone, or something else to ease your would be burden. Fair enough? You may say you don’t need it. You may be right. By not having it, you are just putting your assets at a big gamble because it would suffer or absorb your financial blow.
There is no such thing as self-insured. You are either insured or not. Having insurance allows you to enjoy your assets without risking them due to disability. Even if you have social security, it only pays for total disability. No benefits are payable to you for partial disability or short term disability.
Disability is defined as any mental or physical illness or injury which prevents you from performing your regular work according to the California unemployment Insurance Code. There are 3 types of disability insurance plans for the California Development Department. They are as follows: State plan, Voluntary plan, and Elective coverage. In the state plan, the majority of the employees in California are covered by this plan, and most of the information provided on the disability insurance portion of this site pertains to the State Plan.
On the other hand, the voluntary plan is a private plan that employers and employee groups may apply to the employment development department if both the employees and employers agree to do so. The elective coverage are for those employers and self employed people, not subject to the California unemployment insurance code can elect coverage.
Disability insurance is needed by just about anyone who earns a living. They say single people often need it more than the married couples do since they don’t have any fall back on in case they are injured or hurt. On the other hand, married people would say they have a hard time imagining what it would be like to live on one salary when they can barely get by on two. Hard to say as it is, disability strikes more often than you think.
Remember every disability insurance policy from every insurance company is different from one another. Since this is an insurance product designed to replace anywhere from 45-60% of your gross income on a tax free basis should a sickness or injury occur that would prevent you from earning income. To buy a cheap disability insurance policy may just mean throwing money away. Your odds of getting paid a monthly benefit under a cheap contract may be lower than getting benefits form a quality contract.
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tags: Disability, Insurance
