Should You Buy Disability Insurance?

No one thinks they will end up with a disability, until an unfortunate incident occurs. Employees spend years building up their paycheck for themselves and their family, but when the ability to provide is suddenly gone, many are left in desperate situations. "Your ability to earn an income is your greatest asset, and if you don't cover that, all of those other plans are at risk," says Kamilah Williams-Kemp, vice president for new business at Northwestern Mutual.

Understand the ins and outs of disability insurance and how Nayya can help:

 

What is Disability Insurance?

By paying regular premium payments, disability insurance will pay a portion of your salary in the event of a disabling condition. It acts as a safety net for your income (mortgage, food, utilities, college funds, etc.)

Short-Term Disability 

This insurance covers a period of around three to six months and typically 50-60% of your income. According to the nonprofit Council for Disability Awareness, the most common causes of short-term disability claims are pregnancy, musculoskeletal disorders, digestive disorders, mental health issues, and injuries. 

Long-Term Disability 

Long-term disability insurance will partially cover the lost income for longer durations and usually come with a lengthier elimination period (period between when you stop working and when you can start receiving benefits), lasting to six months or longer. Common long-term disability claims are from musculoskeletal disorders, cancer, pregnancy, mental health issues, and injuries.

 

Who Should Buy and Why?

The fact of the matter is, more than 1 in 4 of today's 20-year-olds will become disabled before reaching age 67, according to the Social Security Administration. If you are a working professional and breadwinner who doesn’t have a good amount of savings and would need to replace income, you should consider looking into purchasing disability insurance. 

 

How Much Does it Cost?

The cost and how much insurance to buy depends on employer subsidization, age, health, and elimination period. Nayya’s SmartSelect takes all of these factors into account, as well as your previous utilization patterns, lifestyle, health, and financial indicators, to give you data-driven, personalized recommendations about which plan is most suitable to you. Rely on Nayya's Companion to find nearby, quality providers and get accurate cost-estimates of different procedures during your treatment.

 

Promote your health while protecting your wealth with Nayya. Reach out to team@nayya.com with any questions.