More than 45 percent of Baby Boomers aren’t concerned about disability insurance, and a least one third of them believe they have less than a 5 percent possibility of experiencing a debilitating illness or injury. Statistics prove otherwise, showing the risk is at least 30 percent that a worker injured on the job or suffering a devastating illness will miss three or more months of work.
Know your coverage
Know your coverage. Many baby boomers mistakenly assume their insurance automatically includes either short or long term disability coverage. Most policies do not normally carry disability insurance, but have separate policies that can be attached to include disability and other types of elective forms of insurance. Read through your policy thoroughly. If you have any questions concerning what is covered and what is not, call your disability insurance broker and ask them directly.
Understand the limits of conventional insurance policies
Conventional insurance policies cover the cost of an illness or an injury, but few offer coverage that extends past the initial injury. Long term care falls under short and/or long term disability policies. Purchase a disability police before you need it and the transition to a facility that offers long term care will be much easier. Staff members at assisted living facilities in Tampa are able to answer questions about the estimated cost of living after being transferred into their care, so don’t wait until an emergency to ask questions about coverage. Be informed about both conventional and long term coverage before you find out you need it. Don’t remain under the impression that a disability policy will cover all of your medical costs. Most benefit programs are deceptively modest. Make sure you have adequate coverage using both types of insurance policies.
Social Security is not a cure-all
As a baby boomer, you know that Social Security is not a perfect system and can be complicated to understand. It was not designed to cover individuals who received a disabling injury or illness. Disability insurance is the most efficient way to help cover where social security leaves off. Contact your insurance agent to discuss the options you have available, and ask them to explain each policy in depth so you understand what Social Security will cover in comparison to what a disability policy will.
Consider what will happen if you do experience an injury that requires long term care and determine your financial needs. Talk to long term care facilities to find out what costs are associated with residency and what you will have to provide out of pocket. Learn as much as you can about both short term and long term disability policies. Know your responsibilities so you can maintain the same quality of life after an accident as you had before. Continually re-evaluate your needs when it comes to long-term care. The financial resources you had at your disposal five years ago may not provide adequate coverage in the future.