Watch CBS News We explore the topic of disability insurance and its necessity in the event of unexpected circumstances causing you to be unable to work due to illness or injury. Disability insurance is a protection policy designed to cushion the financial devastation that might arise when a person can’t work because of an illness or injury. The policy provides financial support to meet up with financial commitments such as daily living and medical bill expenses.

The nature of disability insurance policies can be quite diverse, however, the aim is usually to offer a portion of your income while you’re unable to work. Short-term and long-term are the two main types of disability insurance. Short-term policies typically last for a few months up to a year, while long-term ones allow for income replacement over years or until retirement. The amount you receive, and the duration it lasts heavily depends on the policy terms.

It is noteworthy that disability insurance premiums are usually pegged on a percentage of your income. Also, your income replacement under a disability insurance policy is commensurate with your income. Disability insurance while having many advantages, also presents some drawbacks potential policyholders must consider. Factors such as financial situation, age, occupation, and dependents should guide your decision on obtaining a disability insurance policy. A financial advisor can provide more tailored advice to assist you in making an informed choice.

For further information and personal assistance on disability insurance, you might need to contact the State Disability Insurance (SDI) office. A quick visit to eddcaller.com gives you fast and easy ways to contact SDI. From there, you can get the necessary guidance on how to proceed with obtaining a disability insurance policy.