When Was The Last Time You Took a Look at Your Disability Insurance Papers?
Dr. Sanchez Offers a Personal Story and a Warning
If you are anything like me, it’s been awhile. I haven’t taken a look at the papers since I bought the policy. I get statements from the insurance company and I barely take a look at them. Why should I bother when I’m healthy and nothing is going to happen to me?
Well, something did happen to me this summer. I was in a minor accident and my working hand was injured. I am back to work after a couple of weeks but I did make a call to my insurance agent to go over the policy. As your life situation changes, your disability insurance needs to change along with it. I found out that, after 15 years, I am presently under insured. Disability insurance covers 60 to 80 percent of the present income. It will not cover 100 percent of your income because it pushes you to return to work. I have long term disability that starts at the 91st day after the accident. You should have enough money saved to cover the first 3 months. The cost of short term disability, the policies that start coverage right after the accident, should be saved to have available for that emergency. The insurance industry has programs now with coverage for groups as well as office overhead.
Review your disability policy as soon as possible to make sure you have sufficient coverage. I hope you are more prepared than two friends of mine who, upon hearing of my situation, have told me that they have no disability coverage whatsoever.
Written by Dr. Luis Sanchez