Life & Disability Benefits in Hollister, CA

Planning for the unexpected is a hallmark of insurance. When life changes occur, it can pay to have the right coverage. Life and disability benefits can make a world of difference when they’re needed most. Don’t delay in learning about these valuable forms of insurance.

What Is Life Insurance?

In a basic sense, life insurance is a financial tool designed to pay a death benefit to loved ones after a policyholder’s death; however, there are various coverage options.

Consider the following types of coverage:

• Term life insurance may pay a death benefit to beneficiaries if the policyholder passes while the policy term is effective (typically 10, 20 or 30 years). There is no plan cash value; however, term life policies are typically the most affordable. Term life plans may be especially suitable for families with children and those with ongoing mortgages.
• Permanent life insurance may last a policyholder’s entire lifetime. In addition to a death benefit for beneficiaries, a permanent policy may include a cash-value component that the policyholder can utilize while still alive. Permanent plans may be a good option for estate planning and wealth transfer.

The above descriptions are only brief summations of the two primary types of life coverage. Your Shelton Insurance agent can further explain these and other available insurance options.

What Is Disability Insurance?

Disability insurance is separate from life insurance, but it can be equally valuable to those conscious about planning for unexpected risks. Unlike life insurance, disability insurance is intended to pay the policyholder while they’re still living.

Disability insurance may provide regular payments to individuals after they become injured, typically a percentage of their wages. There are various forms of disability insurance, with short-term disability and long-term disability being the most common. One of the most significant differences between these types is their effective periods (i.e., long-term disability generally kicks in after short-term and lasts longer).

Short-term Disability Insurance in Hollister, CA 

Individual short-term disability insurance is a crucial safety net for those who are temporarily unable to work due to a covered incident. Unlike employer-provided plans, this type of insurance is purchased independently, offering flexibility and tailored coverage. By exploring short-term disability insurance options, individuals can secure the financial stability they need during challenging times. 

What Is Short-term Disability Insurance? 

Individual short-term disability insurance is a type of insurance that can offer temporary income replacement if you are unable to work due to a nonwork-related illness, injury or pregnancy. It typically replaces 40% to 70% of your income and covers you for a period of three to six months. This insurance can help ensure you have financial support to cover essential expenses while you recover. 

How Long is Most Short-term Disability? 

Most short-term disability insurance policies provide coverage for three to six months. The exact duration can vary depending on each specific policy.  

It’s also important to keep in mind that individual short-term disability insurance policies typically have a waiting period, also known as an elimination period. This is the time between when your disability occurs and when you start receiving benefits. The waiting period usually ranges from 7 to 14 days, but it can be longer based on the insurance provider. 

How Much Does Short-term Disability Cost? 

The following factors can influence the cost of individual short-term disability insurance: 

• Age—Younger individuals typically pay lower premiums. 

• Health—Pre-existing conditions or overall health can affect the cost. 

• Occupation—Jobs with higher risk levels may lead to higher premiums. 

• Coverage amount—The more coverage you select, the higher the cost. 

• Benefit period—Longer benefit periods usually result in higher premiums. 

How to Get Short-term Disability Insurance Not Through an Employer 

If you need short-term disability insurance, contact Richard W. Shelton Insurance. 

Where Do I Get Life and Disability Benefits?

Frequently, life and disability insurance are available through an employer’s workplace benefits. Employees typically can choose these and other coverages during their annual open enrollment period or after a qualifying life event.

Life and disability insurance may also be available through private insurance. Securing coverage this way can be beneficial if an individual doesn’t qualify for a workplace benefits package.

Regardless of life circumstances, the professionals at Shelton Insurance can help you prepare for the unexpected. Contact us today to find the right life and disability benefits.