Are you someone who thinks disabling events will never happen to you? If so, you are not the only one. Even if someone known to you has faced a life-changing event in his life, you hold onto the belief that you will be spared. But things have taken a u-turn with the Covid outbreak. Death has come knocking at our doors and we can no longer choose to ignore the importance of disability insurance.
Importance of disability income insurance in a post-Covid world:
- While it should have been one of the most sought-after employee benefits for people working in a marketing agency in Hawaii, most of us chose to overlook disability insurance services so far. People assumed that disability was the outcome of an accident. The truth is we become disabled and unable to work due to illnesses more than accidents. An infection like the coronavirus can be enough to throw your life into disarray. You end up missing week after week of work and losing earnings. So, besides the emotional and physical exhaustion from the illness, you end up stressed because of income loss. Unless you are protected by disability insurance, you may find it hard to lead the kind of life you did.
- Covid-19 has led to hundreds working on SEO in New York losing their jobs in the past year and the trend is continuing in 2021. Unemployment is not included in disability insurance coverage. It mainly aims to protect the earnings of those who cannot perform their official duties because of illness or injury. But, at the same time, there are some features that are beneficial for the unemployed in times such as these. Such features fall into 2 categories, namely, Suspension of Policy and Waiver of Premium. The first waives policy premiums and offers locked-in rates; you can continue the coverage when you are able to. Waiver of Premium will waive premiums when you are unemployed, but the policy stays in force.
- Those who have been hit by the Covid-19 should understand that disability income insurance policies may cover this illness. But the eligibility criteria for benefits can differ amongst providers. While the average policy has a 90-day elimination period from when you start to get benefits, most patients recover before that. However, some patients continue to suffer beyond this time-period and may only be able to work partially even after recovering. This is when you can be entitled to Partial Disability benefits. Talking to a disability insurance broker can help you identify these benefits.
- In the wake of the global pandemic, it is expected that employers will update and add more long-term disability benefits. This is because many patients have remained hospitalized or ill for weeks on end and suffered long-term effects. Such patients will qualify for long-term disability benefits after 90/180 days. As of now, most employers extend only short-term benefits with only a half offering LTD coverage. One can expect LTD coverage to be emphasized as an employee benefit from now on. Covid has shown how LTD policies handle stress-related disability which has been rampant amongst healthcare professionals. Brokers will hopefully realize the stress-related mental health issues arising from the pandemic and consider covering these.
Almost 50% of US adults failed to pay their bills because of the Covid outbreak. Many people filed for short-term disability as they battled the disease. But we need to realize that injuries and illnesses will continue even after the pandemic is over. Disability income insurance needs to be around to protect employee health and wellness. It must be re-evaluated and tweaked, especially for healthcare workers.
