How Does Disability Insurance Work?

If you have disability insurance, whether through work or on your own, you may be unsure about what it does. The basics are that it will help with your finances if you are unable to work due to a disability. 

That being said, there are some things that you need to understand about how disability insurance works. 

You are going to have to pay a premium every month. If you get insurance through your employer, your company may pay this premium without you even realizing it. Your premium may vary depending on your age, health, and the types of coverage that you want. 

If you ever need your disability benefits, you will receive a portion of your regular salary. This is usually between sixty and eighty percent of your normal salary. Depending on your plan (and who you get it through), it may be taxed, or it may not. Generally, it isn’t taxed, unless it is through your employer. 

You also need to understand the benefit period. This is the length of time that you can receive your benefits. Generally, short-term disability will cover up to a year. Long-term may take effect until retirement.  

There may be a waiting period before you are able to collect your benefits. Short-term benefits are often paid quicker than those that are going to be long-term. 

You also need to know what is considered a disability for your plan. Since every plan is different, you need to read the fine print. If you are able to work a desk job, instead of your normal job, you may not qualify. 

If you want to make sure that you are protected, in case you are ever injured or disabled, don’t hesitate to contact Phil Klein Insurance Group in West Bloomfield, MI. 

An In-Depth Look At Disability Insurance

Based in West Bloomfield, MI, Phil Klein Insurance Group proudly services the community. We offer residents multiple types of insurance coverage. We want to make sure that our clients find the policies they need to protect what matters most. As an independent agency, we have partnerships with over 50 carriers around the country.

Disability Insurance Overview

Disability insurance covers you if you have a serious illness or injury that leaves you unable to work. The policy will give you peace of mind as you figure out the next stages in your life. An accident or life-changing event can occur at any moment. That’s why it’s important to have protection.

You have the option of short term coverage, which protects you for a few months while you rehab and prepare to return to the workforce. Long term disability coverage protects you over an extended period of time. You can amend your policy to cover you if you are undergoing training to learn a new skill or title on the job. You can also inquire about partial disability coverage, which protects you if you are only able to work on a part-time basis.

Age isn’t a big factor. Disability insurance can be an asset for younger workers in the workplace because an injury can occur at any moment. While your employer may offer disability coverage, research your own individual policy. That way, you will be protected if you decide to pursue new opportunities in the future.

Having your own policy also provides you with more flexibility in terms of coverage options. Be aware that you may have to deal with a waiting period before your coverage starts. The period normally lasts a few weeks. If you work at a job in West Bloomfield, MI with a high likelihood of injury, disability insurance provides a safety net.

Phil Klein Insurance Group Will Assist You

Visit our website to learn more information about disability insurance.

Disability Insurance: Secure your future

Disability Insurance is not given the importance that it should be given as it is often neglected. One reason is that most people think they will never need it. However, it serves a very important purpose in replacing a portion of your salary if you get disabled due to any reason such as an injury at work. To secure your future and avoid being completely out of income options, you must consider disability insurance.

You might think that you need disability insurance if your job is physically dangerous such a construction worker but many health issues that can cause you to be disabled such a stroke can happen to anyone at any time. If you have family, your income might also be supporting them and any unfortunate event to you might be devastating for the entire family.

Anyone who contributes to social security does that some disability insurance but that usually is too less amount for it to replace a substantial portion of your salary. Another reason that disability insurance is not that common is because of the high costs. With a smaller pool of people getting this type of insurance and the fact the policy provider might be making payments for decades, this type of insurance is expensive but as the number of policyholders increase, it is getting better.

The best way to guidance on this issue is to get in touch with experts on disability insurance. One such expert is Phil Klein Insurance Group of West Bloomfield, MI. Their highly trained agents will guide you to the best policy for your specific needs. In fact, at Phil Klein Insurance Group West Bloomfield MI you will get to know of any pitfalls to avoid. You can visit their website for contact information.

How To Avoid Six Situations That Can Destroy A Business

1. “I KNOW WHAT MY BUSINESS IS WORTH”
•Have you ever had your company value appraised by an outside resource?
•Has that appraisal been done within the last three years?
•Do you have a Buy/Sell agreement? •Is it funded?
•Has it been reviewed within the last three years?
•Do you know where your Buy/Sell agreement is kept?

2. “I’M TOO BUSY RUNNING THE COMPANY”
•Do you have a will? •A trust?
•Is it up to date?
•Do you have a plan to retain key employees if something happens to?
•Has your Trust & Estate Plan been reviewed in the last three years?
•Have you identified and written down your trusted advisors?

3. “THAT’LL NEVER HAPPEN TO ME”
•Do you have a succession plan in place?
•Have you involved both key employees and family members in your succession planning?
•Does your succession plan have a provision for disability?
•Have you identified or written down who you want to run the company?
•Do you have disability buy-sell overhead expense coverage?

4. “THERE’S PLENTY OF TIME FOR THAT”
•Do you know when you want to retire? •How much income will you need?
•Do you want to be running the company full-time, five years from today?
•Do you know how much control in the business you must maintain in order to secure your retirement income?
•Have you explored financing opportunities for key employees to buy the company in the future?

5. “MY BUSINESS IS MY RETIREMENT”
•Do you have a retirement vehicle other than your business?
•Is 25% or less of your business assets a part of your retirement plan?
•Will your retirement funding come from more than four sources?
•Have you had your retirement income projected/analyzed to identify shortfalls?
•In the past year, have you spent more than one hour planning for retirement?

6. “YOU CAN’T BEAT UNCLE SAM”
•Do you have a TEAM of financial advisors working with you?
•Are you proactively planning to deal with changes in the tax laws?
•Will any sources of your retirement income be received tax free?

Questions? Concerns? Call Owen Rosen at (248) 682-7445 today or email owen@philkleininsurance.com