Long Term Disability Insurance in Hollister, CA

Long-term disability insurance is an essential yet often overlooked component of financial planning. It can offer a crucial safety net, helping to ensure that individuals can maintain their financial stability if they become unable to work due to severe illness or injury. Understanding how this insurance works and the factors influencing its cost can empower individuals to make informed decisions about their financial future. 

What Is Long-term Disability Insurance and How Does It Work? 

Long-term disability insurance is a financial safety net designed to provide income replacement if you cannot work due to severe illness or injury. It typically covers a portion of your pre-disability earnings and can extend benefits for several years or even until retirement age.  

The policy typically includes an elimination period, which is a waiting time before benefits start, ranging from 30 days to a year or more. Long-term insurance can be obtained through an employer or purchased individually, and it covers a wide range of conditions, such as musculoskeletal disorders, cancer, heart disease and mental health issues. This type of insurance can help ensure financial stability during extended periods when you are unable to work. 

How Much Is Long-term Insurance? 

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

• Age—Younger individuals typically pay lower premiums, while older individuals face higher costs. 

• Health—Your health status, including preexisting conditions, can significantly impact your premiums. Healthier individuals typically pay less. 

• Occupation—Jobs that are considered high risk or physically demanding often result in higher premiums. 

• Income—The coverage you need is based on your income. Higher earners will pay more to protect their income. 

• Benefit period—The length of time you can receive benefits affects the cost. Longer benefit periods, such as coverage until retirement age, increase premiums. 

• Elimination period length—Shorter elimination periods result in higher premiums. 

• Lifestyle and hobbies—Engaging in risky activities like extreme sports can lead to higher premiums. 

Is It Worth It to Get Long-term Disability Insurance? 

Contact Richard W. Shelton Insurance to determine if long-term disability insurance is right for you.