A bread earner of the family has specific responsibilities upon them. If you suddenly are unable to work because of an injury or illness, insurance is your shot at making ends meet. Whether employed or working independently, having disability insurance can protect you in more than one way. You may think that insurance provided by your employer might be enough. Unfortunately, some industries, like law firms, offer only limited income benefits that cover your salary.
About 51 million working adults do not opt for disability insurance, a sad fact. What’s more unfortunate is that only 28% of households can cover recurring expenses in the event of liquid savings.
The mistake is to glaze over the fact that emergencies can occur. In this article, we have highlighted the critical details about the types of injuries and illnesses your insurance can cover so that you can opt for the most operational plan.
What is meant by disability insurance for attorneys?
Simply put, it is the type of insurance that is replaced with a part of your income in case of any injury or disease that makes it impossible for you to work. Depending on the payment, it can be a huge risk to rely on only one source, according to Carol Glazer, president of the National Organization on Disability in New York. The probability of becoming disabled is between age 20 and normal retirement, including attorneys.
If you make only $50,000 a year and work for more than 42 years that adds up to approximately $2 million! Your ability to work is the biggest asset, something you need to protect with insurance that pays 40% to 60% of your salary.
Suppose you are an attorney willing to reduce your income and lifestyle considerably. In that case, you can opt for Security Disability Insurance (SSDI), more commonly known as family charity, in which you are awarded $1,222.75 monthly.
According to the Bureau of Labor Statistics, an average 30 years old attorney; who does not have disability insurance, earns up to $126,930 annually. If insured, the disability insurance for such attorneys can get them up to $6,200 per month.
Types of illness and injury insurance to opt for
An employed individual can claim Statutory Sick Pay (SSP) if they cannot work due to an illness or injury. It may not cover all substantial outgoings, therefore you must learn about the disease and injury insurance options you can choose from.
Life insurance coverage for the attorneys
Life insurance provides sustenance to the family of the attorney who dies unexpectedly. It is essential in case your family is dependent on your salary. If you want an insurance policy that pays ten times the amount of your yearly income, then life insurance covers the requirements. It’s about estimating the amount of life insurance you will require and calculating your family’s daily living expenses such as mortgage payments, outstanding loans, child care, taxes, etc.
You can opt for whole life insurance that you continue to pay monthly or a term life covering a specific time. When deciding, consider the factors such as age, occupation, and the number of dependents. It includes injury, illness like trauma, total and permanent disability, and accidental deaths.
Supplemental health insurance
Surprisingly, 9.2% of the American population has no health insurance coverage, according to the Centers for Disease Control (CDC). More than 60% receive health coverage via their employer or government-based subsidised programmes like Medicare. With proper health insurance, you do not need to skip annual visits to a doctor or for rare ailments. The bills won’t be massive in case you or a family member have an accident or develop chronic disease with age.
Getting a minimal policy may even work for those on a tight budget. With a moderate income, 80 million people are still eligible for Medicaid. In some cases, you may also qualify for subsidised coverage under the Affordable Care Act.
Long-term care insurance
People often think they do not need this insurance, but the Social Security Administration believes otherwise. According to their recent stats, one in four workers become disabled and cannot work. These include lawyers, agents, teachers, and so on. Usually, workers have provident health insurance, but it only pays for hospitalisation and medical bills. To opt for long-term care insurance, ensure it covers your stay in a nursing facility or home healthcare.
Usually, it costs $69,000 to $78,000 on average annually. Contrary to popular belief, Medicare does not cover long-term illness or injury. So if you are an elderly citizen over age 65, you are among 70% of the population who will eventually need long-term care.
To facilitate the workers, the government has taken crucial steps to benefit the public who qualify for insurance with:
- Social security
- Worker’s compensation
- Medicare and Medicaid
It primarily covers short-term and, in some relatable cases, long-term injury and illness benefits for the individuals and their families. People with limited options can opt for it.
4 Key considerations of injury and illness insurance
The main aim is financial protection to make a valid claim in case you are injured or sick. Following are the injuries and illnesses usually covered by any of these insurances.
These injuries bring damage to the body from an external force and can be severe to varying degrees like:
- Cuts and lacerations
- Burns and abrasions
- Penetrating wounds
- Broken bones and fractures
Psychological and psychiatric injuries
These conditions include abnormal thoughts, feelings, or behaviours like depression, anxiety, and post-traumatic stress disorder.
Any abnormal medical condition affects part of the body that may result due infection, inflammation, or other environmental factors, including:
- Industrial deafness
- Work-related respiratory diseases like asbestosis, silicosis, and others
Aggravated injury or ongoing symptoms
Sometimes your job can make a pre-existing injury worse. If it happens, you can claim with any of the above insurances discussed earlier. Occasionally law firms and other institutions provide insurance for ongoing symptoms too. You can make a claim upon confirmation that symptoms are related to the original injury.
To lead a healthy and prosperous life, it is critical to attain insurance that best fits the bill. If you need more advice, we recommend that you research the type of insurance you want that will cover the majority of injuries and illnesses to benefit you.