How Does a Disability Insurance Policy Work?

If you depend on your ability to earn a paycheck and that ability is interrupted, disability insurance provides you and your family with financial security.

How it Works

Disability insurance in Fort Myers replaces a percentage of your income lost due to your inability to earn a paycheck. If you have disability insurance, the money you receive will allow you to continue to pay bills, cover home expenses, and provide for your family while you can’t work.

In your policy, you’ll find:

• Your premium amount
• How your specific policy defines disability
• How much you’ll receive in benefits
• How long those benefits will last

 

What Disability Insurance Covers

Disability insurance covers injuries or illnesses that prevent you from working and earning a paycheck. There is coverage for both long-term and short-term disabilities. When it comes to long-term disability coverage, you can expect to see reasonings such as:

• Arthritis
• Back pain
• Cancer
• Depression
• Diabetes
• Heart disease
• Stroke

Short-term reasonings may include:

• Fractures
• Sprains
• Muscle strains

The range of disabilities is wide and varied, and the scope is much broader than many realize.

The Underwriting

Your risk of becoming disabled greatly affects how much you’ll pay for coverage. The way insurance companies calculate how likely you are to become disabled is by assessing your risk and analyzing these factors:

• Your Age

  • The older you get, the more likely you are to become disabled, and the cost of disability insurance increases.

• Your Gender

  • Women pay up to 40% higher in premiums for disability insurance because they file more claims than men that last for a longer period of time.

• Health History

  • Things like past/current tobacco use, chronic conditions, family medical history, height and weight, and blood and urine test results come into play.

• Job Occupation

  • Some positions are more susceptible to risk than others. Insurance companies also want to assess how possible it would be to do your job while injured or ill.

• Annual Income

  • The more money you earn, the more benefits you’ll receive if you become disabled.

• Your Location

  • Insurers consider the regulations, claims history, and living costs in your state.

Do I Need Disability Insurance?

If you rely on your income, it’s wise to invest in disability insurance. Disability insurance in Fort Myers is for everyone – it allows you to be proactive instead of reactive, and prepare for whatever events could happen in the future.

For a free quote, contact Chapman Insurance Group today.