Combining Life and Disability Insurance

Combining Life and Disability Insurance

It can be hard to impress the need for life or disability insurance upon a young person just entering the workforce. It is the nature of youth to fail to see the potential for such a purchase. It can also be hard to manage the payments of such insurances. For individuals with a disability who already possibly use apps with invoicing software to help them manage payments and health insurance reimbursements, they might be able to guarantee that balancing insurance policies and figuring them out can be tricky.

The most interest you might get from a young worker is regarding what pay they are entitled to when off sick. Many employees look into sick leave state law, depending on where they are working, to find out what they are entitled to. So why don’t they take an interest in insurance, too? When a person is young and healthy it is the most advantageous time to get the most life and disability coverage at the best rates. In the past, these purchases were made separately. Each type of coverage – life or disability – required its own application, medical tests, approvals, and premiums. These days there is a new product on the market that encourages the combining of life and disability insurance into one product. People who live with disabilities go through a lot and have to deal with more than able-bodied people have to. Even digitally they can find maneuvering areas difficult, there is more here on how this can be helped and what can be used to ease that issue.

How Combined Life and Disability Insurance Works

Although it is one policy, combined life and disability insurance can be accessed separately until the age of 65. If the insured is injured at any time before the policy expires, then they can access the disability benefits from the policy to meet monthly expenses while being unable to work. The remainder of the policy can be used in this same way when the need arises due to disability or death. The primary advantage of combining life and disability insurance is that it allows an insured to simplify his insurance portfolio into one easy application and one monthly payment. Those looking to access disability benefits through social security should find out whether or not they are likely to qualify before entering into the application stage. Learning about the social security disability requirements is probably a good first step to take in doing this.

The Disability Portion

The disability benefits offered by combining life and disability insurance do not differ much from a traditional disability insurance plan. However, individual insurance companies alter slightly different policy limitations, medical requirement or policy rates. Most combined life and disability policies will offer the following benefits for disability:

Disability coverage for as long as insured cannot work in regular occupation
Disability coverage to age 65
Disability coverage after a set waiting period

The Life Insurance Portion

The life insurance benefits offered by combining life and disability insurance are different from those offered in a regular life insurance plan because the combined life insurance is only valid until the insured reaches the age of 65. Some insurance companies may offer an option to move the remaining life insurance benefits into a permanent life insurance plan at expiration. Most likely this will not require any additional medical proof or requirements, but that will be at the discretion of the individual insurance company.

How Combined Life and Disability Insurance is Best Used

Combining life and disability insurance is not for every consumer. A financial advisor can help a consumer decide which insurance solutions best meet their needs. When it comes to combined life and disability insurance, this type of insurance works best for protecting short-term financial needs that may arise in the following situations:

Mortgage protection in the event of disability or death before age 65
Small business planning and protection against disability or death before age 65
Family insurance planning against disability or death before age 65

No one can predict the future. Combining life and disability insurance into one comprehensive plan can ease the burden of managing a large portfolio while providing the consumer with right coverage at the right price. can help. Call us today at 905.248.4849.

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