Life insurance is one of the best purchases that you’ll ever make. It’s one of the few ways that you can ensure that your loved ones will have the money that they need, even if something tragic were to happen to you, but what would happen if you were to become disabled? Would your family have the money that they need to pay for medical bills and hospital fees? Would they have the money that they need to replace your income? That’s where long-term disability insurance can come in.
At LifeInsuranceForAccountants.com, it’s our mission to ensure that you’ve gotten the best life insurance rates possible. We know that shopping for life insurance or disability insurance can be a confusing process, but that’s why we are here to help.
What is Long-Term Disability Insurance?
A lot of companies offer their employees short-term disability insurance, which will pay for some basic bills and medical costs if something were to happen to you, like an accident. The short-term disability insurance is an excellent incentive for employees and its excellent protection.
With short-term, if you can’t work because of a sickness or an injury that doesn’t occur at work, then it’s going to pay around 60% of your salary. Some insurance plans will pay more while others are going to pay less. Additionally, with short-term, the length of your coverage is going to differ as well. Some plans will give you salary reimbursement for up to 2 years, but most are going to give coverage for six months.
After those two years is up, you’re no longer going to get any money, and for a lot of families, that could be detrimental. Not having that money could leave your family struggling to pay for any necessary expenses. If you’re worried about something happening to you and being disabled for a long time, then it’s important that you have the protection that you need.
Long-term disability is going to kick in when short-term drops off. With a long-term policy, you’re going to get around 50% of your salary reimbursed for the stated length in your policy or until you can return to work. There are some long-term disability plans that will partially replace your salary until your age 65, while others are going to have a pre-determined length of effectiveness.
Another important factor to note is if something were to happen to you, and you were required to take a job that pays less than 20% of what you were making before, then you’ll be eligible for disability benefits and able to get the benefits from your long-term disability insurance policy.
If for whatever reason, you start receiving the benefits from the disability policy, then you won’t have to pay the premiums for the policy. With the vast majority of companies (just about all of them), the premiums are going to be waived if you have to cash out on the plan.
AICPA Long Term Disability Insurance
Now that we’ve looked at the basics of long-term disability insurance, we can look at the AIPCA coverage. If you’re a CPA, and we are going to assume that you are since you’re reading this post, then you probably know about the AICPA and some of the benefits that the group offers.
The AICPA offers several types of insurance plans that you can purchase if you’re a member. They have several types of life insurance and long-term disability insurance policies. With their long-term plan, you’ll be able to get up to $12,000 worth of benefits every month if you’re deemed disabled. For this plan, to get these benefits, you’ll have to be in a state where you can’t work either full-time or part-time.
Should you Get Long-Term Disability Insurance Coverage?
When you’re looking at all of your insurance plans, it’s important that you consider all of the things that could happen to you. While you don’t want to imagine anything tragic happening to you leaving you disabled, but it’s vital that you plan for the worst. Long-term disability insurance will ensure that you’re loved ones will have the money that they need to pay for any basic expenses, even if something tragic were to happen to you.
The vast majority of Americans don’t have any disability insurance, which could be one of the worst mistakes that you’ll ever make for yourself and your loved ones. These plans are much more affordable than you might assume, and while you’ll probably never need it, it’s important that you have that safety net in place.
Working with An Independent Insurance Agent
Every insurance company is different, and all of them are going to give you different rates depending on the company that you contact. If you want to ensure that you’re getting the lowest rates, it’s vital that you contact dozens of plans before you pick the one that works best for you.
Because every company is different, and all of them are going to offer you different rates and advantages depending on the company that you contact. That means that you could waste hours and hours calling different companies and talking to various agents.
Instead of using your valuable time, let one of our independent agents do all of the hard work for you. Unlike a traditional insurance agent, we are a group of independent brokers, and we represent dozens and dozens of highly rated companies across the country. We can bring a personalized set of quotes directly to you. Working with us will save you both time and money on your life insurance coverage.
If you have any questions about long-term disability insurance or options for life insurance, please contact us today. We would love to answer those questions and ensure that you’ve got all the coverage that you and your family deserves.