Do you have a disability insurance policy? Many people don’t think about adding disability to their insurance portfolios. Either they don’t consider the possibility of becoming partially or totally disabled, or they think their place of employment offers disability insurance. The truth of the matter is that only about 35 percent of private sector workers are offered long-term disability. Slightly more, at 43 percent, have access to short-term disability through their workplace, and the coverage may be more limited than you think. This is why it’s a good idea to have your own private disability insurance.
Types of Disability Insurance You Can Purchase in Florida
Disability insurance helps you pay your bills and buy food and essentials when you can’t work. The two most common types of disability insurance are short-term and long-term. However, you can also buy disability insurance to pay for specific things, like your credit cards and mortgage.
Long-term disability pays you a monthly dollar amount for an extended period of time. This can be as short as 5 years or until you reach the age of 67. Long-term disability also comes with an elimination period. This is the time from when you were first declared medically disabled and the time you can start claiming your disability benefits. The exact monthly amount you receive depends on your income at the time you were injured or became too ill to work. It can be as much as 70 percent of your previous income but tends to range between 40 and 70 percent. Monthly stipends tend to range between $500 and $20,000 per month.
Short-term disability begins when you become too injured to work. During the time period covered by short-term disability, you could make a recovery and return to work or be declared permanently disabled. Short-term disability usually lasts between 1 and 3 years, and individuals can expect to receive between $300 and $3,000 per month. However, it’s important to note that the amount of money you receive is dependent on your prior income.
Mortgage disability is a separate disability policy that specifically pays for your mortgage. This policy takes effect once you are declared totally disabled and typically lasts up to three years.
When you lose your primary source of income due to a disability, you may find yourself having difficulty keeping up with your credit card payments, car payment or other credit obligations. Credit disability gives you a monthly stipend that you can use to pay your various debts.
Cost of Florida Disability Insurance
The cost of your individual disability insurance policy in Florida will depend on your age and your job. In general, it’s less expensive if you’re in your 20s and work a desk job than if you’re older and work in construction or another type of manual labor job. For most people, disability insurance is based on their current pay, usually between 1 and 3 percent of their income.
Factors that Affect the Cost of Your Disability Insurance in Florida
- Your Age – Older people tend to pay more for disability insurance than younger people. There is also an option to purchase a policy when you’re young and healthy and lock in those rates into the future. The caveat is that you’ll have to keep the policy valid if you want to continue to enjoy the low premiums.
- Your Gender – Your gender affects how much your pay in disability premiums. Women tend to pay higher premiums overall, but men tend to experience faster increases in their premiums as they get older.
- Your Occupation – If you work a manual labor job or a job that is known to have more risks than average, you’ll pay more for your disability insurance.
- Your Health – If you already have preexisting conditions that can lead to disability, your premiums will be higher.
- The Amount of Coverage You Select – Individuals can typically choose between 40 and 70 percent of their income. The higher the percentage, the more you’ll pay for disability insurance.
- The Benefit Period – How long your policy pays once you are declared disabled.
- The Elimination Period – This is also referred to as a waiting period. This is the amount of time between when you are first declared disabled and when you can start collecting benefits.
Get Disability Insurance with Fearnow in Florida
If you need disability insurance in Florida, Fearnow can help. We have long-term, short-term, mortgage and credit disability policies available from more than 350 insurance carriers, which means we can get you the coverage you need at a price you can afford. By purchasing a policy now, you are helping to ensure that you can pay your bills if you become temporarily or permanently disabled.
To learn more about the different types of disability insurance and how it can help you as well as to receive a quote, give us a call at 813-689-8878.