When a physical injury keeps you from working, disability insurance can help get the bills paid. In reality, disability insurance is as important as (and in some cases, even more important than) life insurance. It is a lifeline in situations that are beyond your control.
Melton McFadden is your trusted provider for both long term and short-term disability insurance. We understand that certain situations and circumstances are unpredictable, and that’s why we offer our customers the most comprehensive disability insurance Michigan has to offer./p>
Importance of Disability Insurance
Accidents happen a lot more than we like to admit. Health can also deteriorate suddenly, leading to disabilities out of the blue. In fact, every year, 12% of the adult U.S. population suffers a long-term disability. One out of every seven workers will suffer a five-year or longer period of disability before age 65, and if you’re 35 now, your chances of experiencing a three-month or longer disability before you reach age 65 are 50%. If you’re 45, that number rises to 44%.
These odds would not be a problem if people had substantial savings that could be drawn on in the event of a disability. But that’s rarely the case, and any money that has been set aside has likely been earmarked for goals such as college or retirement.
Factors of Disability Insurance in Michigan
There are many kinds of disability policies and options in Michigan. However, the basics are simple. Here are the variables that make up a disability insurance plan in Michigan:
Amount of Monthly Benefit
The first variable is the amount of monthly benefit. Most disability policies have a fixed monthly benefit that does not increase with time, although you can purchase extra coverage, or riders, that offer higher payment schedules.
Type of Disability
The second variable is the definition of the disability — whether it is “own occ,” or the inability to perform the duties of your specific occupation, or “any occ,” the inability to perform the duties of any job for which your education and training make you qualified.
Waiting Period Prior to Benefits
The third variable is the waiting period or the amount of time you must be disabled before benefits kick in. These waiting periods can range from one week to two years, and the longer you wait, the less your disability policy will cost.
Duration of Benefits
The fourth variable is the benefit period, or how long you will receive monthly benefits once your policy starts paying. The benefit period can range from six months to life, depending on what you choose as well as what your insurance company is willing to offer you.
In addition to these variables, there are other coverage options, as well as a variety of other riders. The most important is a rider that pays if you can only remain or return to work part-time. The Social Security offset rider guarantees that if you qualify for disability payments under your insurance policy but not for Social Security (a frequent occurrence), your disability policy will pay what Social Security should have.
Lastly, an additional purchase option will guarantee you the right to buy supplemental disability insurance in the future regardless of your health at that time.
Short Term Disability Insurance
disability insurance covers employees that are unable to work temporarily.
This policy does not cover work-related injuries, as workers’ compensation insurance generally covers injuries of that kind.
Short-term disability insurance helps employees that need coverage during times of temporary illness, accident, or injury. This policy will provide an employee with approximately 50-70% of their salary. This coverage usually lasts anywhere from three to six months. If an employee still needs coverage after this period, they will generally seek out long-term disability insurance.
Long-Term Disability Insurance
Long-term disability insurance is a policy designed to protect you and your family in the case of a long-term disability. The term of this protection varies, but a user of long-term disability insurance will miss an average of 2.5 years of work.
This insurance generally does not cover work-related incidents or accidents that would usually be covered by workers’ compensation insurance. Instead, this is a form of insurance designed to keep a family or individual afloat in the case of a long-term illness or injury. Any loss of income can be devastating to an individual or a family, and this coverage protects against it.
Long-term disability insurance is the solution after short-term disability insurance ends coverage. With long-term disability insurance, an employee will usually receive about 50-70% of their yearly salary, just as with short-term disability insurance.
Trusted Michigan Disability Insurance Plans
Melton McFadden is a leading provider of both short-term and long-term disability insurance throughout the state of Michigan. We connect employees, companies, and more to a network of comprehensive options for disability insurance.
We help people get the coverage they deserve in times of need. Our plans help individuals and families stay financially stable during an illness, accident, or injury no matter the duration needed for coverage.
With our upfront pricing plan and transparent, well-rounded policies, you can trust the service you receive with Melton McFadden. Get started with a disability insurance quote today!
If you have any questions about disability insurance or not sure if you need coverage, please contact us for a needs assessment! Also, learn about our immediate health care solutions.