If you do not give high priority to health insurance, you are not alone. Although most people underestimate their chances of disability, the risk is higher than you might think. About a third of the population will experience a disability before 65, as reported on Kiplinger. Underestimating the odds of needing health insurance can be a big mistake.
According to the TMA Insurance Trust:
- Today, about one in four 20-year-olds becomes disabled before retirement.
- One in eight workers will be disabled for five or more years of their lives.
- About 12% of the total American population (37 million) is classified as disabled.
- 90% of disabilities are caused by illness, unlike accidents.
- The average length of a group claim for long-term disability is 34.6 months.
- Medical issues contribute to 62% of all bankruptcies in the United States
Do older people have a greater need for health insurance?
This type of coverage is not just for the elderly. People in their 20s, 30s and 40s can be injured in accidents or develop chronic diseases. The longer you wait to buy insurance, the higher your premiums are likely to be. Age is a factor in health insurance prices.
What types of disabilities are available?
Disability protection can help protect your income and protect your finances. If you become too ill or too badly injured to work, it pays for part of your regular income. The two types of health insurance are:
- Short-term disability: This type of insurance serves people who need income coverage for a short time. It can cover you for up to two years.
- Long-term disability: This insurance starts when short-term disability ends. It can provide coverage for an extended period of time. The coverage usually lasts until the insured reaches the age of 65 to 70.
What are the categories for disability coverage?
Your ability to collect benefits depends on how “disability” is defined under your policy. The two main categories of coverage are “own profession” and “all professions.” According to a health insurance for “own profession”, you are entitled to benefits if you can not manage your profession. “All professions” policies are only paid out if you are unable to work in any gainful employment.
What does the health insurance cost and how much does it pay out?
Your health insurance premiums will depend on several factors, including your age and health at the time of purchase. The earlier you buy insurance, the lower your prices will be. In general, you can expect to pay between 1% and 3% of your income in health insurance premiums. If you become disabled, insurance benefits should reimburse about 60% to 80% of your pre-tax salary.
The amount you collect should roughly correspond to your home salary.
If you are considering buying health insurance, talk to our friendly agent. We can help you find the lowest available prices for the coverage you need.