If you're currently waiting for your disability claim to go through, you may wonder how you'll pay your bills until you receive your benefits. Although you can't change the situation right now, there's a way to avoid this scenario in the future by obtaining disability income insurance. Disability income insurance helps you meet the needs of your living expenses and more while you wait for your traditional disability benefits. It's provided by health insurance companies as supplemental benefits for Social Security Disability benefits or Social Security Supplemental benefits. Here's why you should consider disability income insurance as an option in the future.
What Is Disability Income Insurance?
Losing the ability to earn a full-time income can potentially devastate your finances. Although your attorney works very hard to get you the Social Security benefits you deserve, you may end up paying your bills and other living expenses late until he or she completes your claim. Disability income insurance may offer some relief and peace of mind in regards to this problem. It covers your expenses until your traditional Social Security benefits take over.
How Much Disability Income Do You Qualify For?
The amount of disability income insurance benefits you receive may depend on a percentage of the income you received from work before your injury or illness. Some insurance providers that offer this type of supplemental insurance base the percentage on the:
- Number of years you've been at your job
- Amount of the regular Social Security benefits you may receive if you're injured or ill
- Number of dependents or children in your care
These are just several factors insurance providers may look at when helping you choose a disability income plan. However, you can choose a plan based on your own preferences, providing it doesn't exceed your gross income. For example, you may qualify for benefits that fall between 45-65 percent of what you earn from work. In any case, the percentage may help cover your living expenses.
What Does Disability Income Insurance Help You Pay?
The supplemental insurance may keep you afloat until the Social Security Administration approves your disability claim. Depending on the reasons for your disability, the medical care and expenses you incur may place you in a financial bind. If you don't have enough Social Security benefits to cover the expenses, you may have to pay out of your own pockets for them. Disability income insurance may alleviate some of the financial stress you face by paying these added expenses for you.
In addition, the supplemental insurance may temporarily protect you from other financial pitfalls, such as losing your home to foreclosure. A number of disabled people lose their homes to foreclosures because they can't pay the mortgage payments. The supplemental benefits can go straight to the mortgage holder or bank if you can't physically pay the fees yourself. However, you may choose to receive the benefits directly to a bank account and pay the mortgage company yourself.
What Are Some Additional Things to Know About Disability Income Insurance?
Before you choose a disability income insurance plan, you should keep a few things in mind. You should shop around for a disability income provider that pays most or all of your expenses. In addition, choose a plan you can afford to pay each month to avoid losing your benefits in the future. If necessary, have a disability attorney look over the supplemental income insurance forms for hidden fees or stipulations to be sure you're getting the right plan for your needs.
When the time comes to file a traditional disability claim, contact your disability income insurance provider immediately. You may request that your disability attorney do this for you. It provides proof of your health situation, so that the insurance company doesn't make you wait until it verifies your condition. Your attorney may also give the insurance provider the dates of your Social Security claim filing to speed up the process.
Protecting your home, family and finances is something you can look into now. Your disability attorney will get you the traditional disability benefits you need. It doesn't hurt to have a little help until he or she does. Contact a local disability attorney for more information about disability insurance claims.