Selecting the Best Life and Disability Insurance that is Fit for You

Personal finance isn’t just about getting the most out finances and growing it – it is also protecting what you currently and already have. According to most financial advisors, it is best if you insure your car, your home, your health, and most especially, your life. Only a lesser number of people insure their income – which is supposed to be the most critical kind of insurance that needs to be done. If you are thinking that you are already insured because your employer agreed to the disability insurance quotes and life insurance calculator results and paid for it, you are wrong. You are most likely to have a false sense of security so it is best if you verify and check the kind of insurance you already have if there is. If you do, then it is most likely a short-term insurance and most are co-terminus with your job – which means that if you lose your job, you lose your insurance with it. What you seriously need to think about is long-term coverage which can tide you over until your social security kicks in.

When you are still in your prime, you more likely to face disability, than death. Statistics have shown that nearly one out of three workers suffer a disability that will last no less than three months. This means a great dent in your finances, if you are not ready. Simply put, since you cannot do your job because of your condition, then you don’t get any money; which is why you really need insurance while you are still in you prime.

The first thing that you need to check when getting disability insurance quotes is the ‘own occupation’ policy. This explicitly means that if you can’t do your job, the coverage will be able to take care of you and your finances as long as you have a specific job regardless of whatever it is. It is also best if you can secure a policy that will give you coverage of up to 65 years old, where social security benefits will start to kick in. It wouldn’t make sense if you purchase those policies that are cheaper, but will only provide you protection for five to ten years. The next thing that you need to keep in mind is that you need to figure out how long you and your finances can last before the disability benefits start. Once you’ve been hit with a disability, it is always important that you will have an emergency fund before you can start getting your disability benefits. If you have a healthy emergency fund that can tide you over for six months before you need to work, then you can significantly save on premiums. You also have to decide on how much you want or need in benefits. Most insurance companies will give you about sixty percent of your gross income – as shown in most life insurance calculator.  If you pay your own premiums, you will not be taxed on the benefits. So go ahead and do the math. Insurance companies’ charges on premiums may vary. For those who have high risk jobs, the premiums and fees are higher compared to office clerks and other white collar jobs. Home-based employed individuals also may require higher premiums because their income is not easily proven.

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