Disability Insurance in Miami
While many Americans tend to avoid talking about or obtaining a disability insurance policy, the rate of disability in the U.S. has shown how risky it is to be without a disability insurance plan. According to a report by the Rehabilitation Research and Training Center on Disability Statistics and Demographics, 12.6% of Americans are living with a disability—that is a whopping 41.1 million of the 328.2 million that make up the total population. Although the rate varies between age groups, 51.1% of Americans with disabilities are within the working ages of 18-64 years old.
The report also showed that disability conditions have been responsible for many people’s standard of living as the employment percentage gap between those with a disability and those without is over 40%. Moreover, more than one out of five U.S. civilians with a disability within the age group are living in poverty.
Why You Need Disability Insurance Policy
With the above statistics, working without disability insurance coverage is like living on the edge, and many people may find themselves in a very difficult position if something happens and there is nothing to fall back on. Having a disability insurance plan will provide financial coverage for an insured person by paying a certain percent of his or her income if disability strikes.
It will also take care of the welfare of the dependent family members of an insured person. Having disability insurance will also help prevent you from joining the population of people living below the poverty level as a result of a disability that has reduced their earning and purchasing power.
The good thing about disability insurance is that it is designed to fit into an individual’s status and condition. Regardless of the nature of your job, you can get a policy that works perfectly for you. It does not matter if you are a salary earner or self-employed, there is a plan tailored to meet your kind of occupation.
The usual steady income will stop and what’s left in your savings may not last as long as you would like. And when there is no plan-B, things begin to fall apart. This messy situation has plunged some into debt and emotional distress such as desperation and depression. Disability insurance will help cover you for the unexpected.
As you can see, your biggest financial asset is you and your ability to continue providing for yourself and your family!
How Disability Insurance Works in Miami
According to South Florida Disability Statistics, 29.4% of the population of the city of Miami lives with disabilities. This means that Miami has the second highest percentage of people with disabilities in the U.S. Without disability insurance policy, making ends meet will be extremely difficult for people under this category. To this end, the state government has been forthcoming in providing the best legislation that will protect people’s interest in time of disability that may prevent them from working and fending for themselves.
Laws guiding disability insurance in Miami are regulated by the Florida Office of Insurance Regulation, which was established in 2003 to protect disability insurance policyholders in the state. In the 2017-2018 fiscal year alone, the OIR recovered up to $24.4 million on behalf of policyholders in the state. In Miami, you can choose to buy an individual or a group disability insurance policy.
Individual disability insurance coverage is purchased directly by the insured from an insurance company and comes with higher benefits. For instance, it comes with features like partial benefits, lifetime benefits, and cost of living increase. All these benefits are tax-free provided the premiums are paid as agreed in the contract. You get the best coverage when disability strikes and premiums are not going to be increased in the process.
Group disability insurance coverage is coverage that you receive from your employer. Employers in Miami may choose to provide their workers with disability insurance as part of their employee benefits package. Generally, the premium is low and may be partly be paid by your employer. However, it is not as flexible as the individual plan. Another downside of group policy is that the premium increases as you grow older and it is non-portable when you leave your current employment.
Even when your employer provides you with group insurance, it is advisable to supplement it with an individual policy to have a more reliable plan with ease of claims and adequate benefits during disability.
What to Look Out for When Buying Disability Insurance in Miami
Before settling for a disability insurance policy in Miami, the following are some of the critical factors to take into consideration:
The Premium Payable: The premium is the amount of money you are to pay for the policy. The premium can be paid annually, semi-annually, quarterly, or monthly.
The Elimination Period
This is the waiting period between when the insured is declared disabled and when the benefit payment is commenced. It is usually between 30 days and 90 days depending on the rate of the policy premium. A higher premium usually means a fast elimination period.
The Recurrent Disability Clause
Be sure the policy includes recurrent disability, which stipulates that an insured person will not have to observe more than one elimination period within a particular period if there is a recurrence of disability from related causes within six months.
Go for Cost-of-Living Rider
Check if the policy has a cost-of-living rider, which will guarantee a change in the disability benefit payment in proportion to a change in the consumer price index at a given time. With this, you get a higher benefit payment whenever the cost of living increases.
Work with an Experienced Broker
Engage the services of expert insurance and risk management personnel who will review the policy with you and advise you on the right decision to make.
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