For many people in California, the thought of being disabled may seem like something that will never happen to them. However, even a person who today is able-bodied and in excellent health can experience an accident that changes their life forever. The possibility of an unforeseen medical diagnosis also always exists. It is for these reasons that being properly insured is important.
The Social Security Administration estimates that 25% of people who are only 20 years old now will experience a disability lasting at least three months by the time they reach the age of 67. NerdWallet adds that people should consider their ability to earn a living as their primary and most important asset instead of things like investment accounts or homes. Protecting that ability to earn a living is what disability insurance is about.
There are short-term and long-term disability insurance policies and Policy Genius recommends that people carry both types of coverages. As their names imply, short-term disability policies provide compensation to people who are unable to work for a limited length of time. Long-term disability policies kick in after a waiting period. This waiting period might be as long as a full year.
When assessing long-term disability policies, it is essential to pay attention to the details. Some will provide coverage if a person is unable to work in their existing field but others will provide broader coverage that includes the inability to work in any capacity. Some employers offer disability insurance as part of their benefits packages but it is wise to review their terms and consider an individual policy in addition to this.