What You Need to Know about Disability Income Insurance

When an individual acquires a disability, chances are he would not be able to continue working for a certain period of time. In worse cases, he may even be permanently disabled. How can he fund his medication and therapy if he cannot work?
Fortunately, disabled people today can obtain disability income insurance to receive benefits. There are different types of disability insurance and each of them offers financial assistance to disabled individuals:

Government-sponsored insurance programs
As the name suggests, these policies are offered by government agencies. The most popular government-sponsored insurance programs are the Social Security Disability Insurance (SSDI) and the Supplemental Security Income (SSI). Both these disability benefits are offered by the Social Security Administration (SSA) to qualified applicants.

Private employer-sponsored disability policies
Aside from the first category, disabled individuals can also obtain disability income insurance through company insurance policies sponsored by their employers. The employers do no provide the insurance per se; they just deal with an insurance company to cover their employees’ needs in case of emergencies. An example of this type of disability insurance includes Worker’s Compensation benefits.

Individual disability income insurance
Individuals who are well-off may be able to purchase their own disability insurance policy. Policy-holders of this type of disability insurance usually receive more benefits than the first two.

If you are planning to apply for disability income insurance, or even if you already have one, you might want to know how to calculate the monthly benefits you may receive. Here are some of the factors considered in calculating disability benefits:


• Employment salary – You will need to provide past and present employment records and show them to your disability insurance evaluator.

• Medical expenses – Medical bills, records and medication prescriptions should be filed and submitted to the agency or insurance company.

• Assets and properties – Bank accounts, other insurance policies, and properties are considered in some disability insurance policies such as SSI.
Applying for disability income insurance is essential for disabled individuals to fund their medication. However, the application process for such benefits is often complicated and tiresome. If you want to attain your goal much easier, hire a disability insurance attorney to handle the more difficult matters for you.