US Disability Insurance, USA Disability Insurance, Disability Insurance US, Disability Insurance USA

By: EconomyWatch   Date: 26 May 2010

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US disability insurance provides cash coverage to US citizens in case of a disability caused due to injury or sickness or both. A disability can leave you unable to work, thereby preventing you from earning your livelihood for a short or long period of time. A USA disability insurance policy ensures a replacement income for the period that you are unable to work. The coverage is dependent on the risk quotient involved in your occupation. Generally, the cash coverage is not more than 66% of your total income, which roughly equals your income after all tax deductions.

How is the Premium Decided?

Disability insurance US can cost you anything from $1000 to $1500. The amount of premium is determined on the basis of your occupation, age, sex and potential hazard. Lower the chances of a mishap due to your profession, lower will be the premiums and vice versa.

Types of US Disability Insurance

  • Short-term disability policies have a maximum benefit period of not more than two years and are activated within two weeks.
  • Long term disability policies can have a benefit period of a few years to a lifetime. The activation of these policies might take some time, ranging from a few weeks to a few months.
  • Policies can also be divided into cancelable ad non cancelable ones. It is advisable to choose a non-cancelable policy, since you can renew this policy without an increase in the premium. Although a non-cancelable policy might be more expensive, cannot be cancelled by the insurance companies, unlike a cancelable one.


    • How to Calculate the Amount of Coverage you might Need?

    Determine the worth of your existing property, which includes your spouse’s income and your investment income. Add to it the worker’s compensation and union coverage that you get if you are insured by your employer. Lastly, you need to decide on the amount of money you need to maintain your lifestyle. The disability coverage that you will require will be the difference between what you have and what you need and this is the amount of coverage for which you should buy your policy.

    How to Derive Maximum Benefit from US Disability Insurance?

  • You can buy ‘Catch Up Rider Insurance,’ which gives cash coverage for lost business during your disability after you recover.
  • With ‘Guaranteed Future Additional Insurance,’ you can buy new insurance without proving your health conditions.
  • Look carefully at the clauses of your policy and check the definition of disability so that you are protected by it in case of an unfortunate event.
  • A Cost Of Living Adjustment (COLA) ensures that your benefits remain the same even with inflation in the market.




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