Did you know that approximately 40% of Americans cannot afford a $400 emergency? This means a loss of income due to disability could have devastating financial affects.
As important as it is to prepare for our financial future, looking at options to ensure we will have consistent income in the event of a long or short-term disability can be a saving grace in the midst of managing a temporary medical condition that restricts one's ability to work.
Income Protection Insurance (aka Disability Insurance) policies provide income to help cover regular living expenses in the event that the insured becomes unable to work due to a medical issue.
When thinking about Income Protection Insurance, there are two options -- Short-Term Disability (STD) and Long-Term Disability (LTD).
A short-term disability policy has a waiting period of 0 to 14 days, with a maximum benefit period of no longer than two years (24 months).
Long-term disability policies have a waiting period of several weeks to several months, with a maximum benefit period ranging from a few years to the rest of your life.
Once we start depending on our income, it is time to explore income protection (aka disability) coverage. Whether choosing a long-term or short-term disability policy, the important thing is making the choice to plan ahead.
