|
Disability insurance alternatives
By Pat Curry • Bankrate.com
 If
you can't get individual disability insurance coverage, some other
options may be available:
- Association coverage: Often issued
through professional associations, these policies usually offer
a lower level of coverage.
- Long-term care coverage: Inexpensive
and readily available, but they are at best a poor substitute
for disability insurance. Long-term coverage reimburses medical
expenses if a doctor determines you can't perform at least two
of six basic living activities, such as feeding yourself or bathing.
Some policies pay a flat monthly benefit, but they'll be conservative
in their definition of disability.
- Worker's compensation: If you were
injured on the job, and you've been paying for worker's comp for
your employees, you may be eligible.
- Retirement funds: If you're disabled,
some 401(k) and Keogh plans allow you to withdraw funds early,
without penalty.
- Whole-life insurance: There's no
worse time to go to the bank and try to borrow money than when
you're disabled. Whole-life policies build cash value you can
borrow against.
There are two options you probably shouldn't
count on.
- Social Security: Due to its extremely
strict definitions about disability and work-history eligibility,
this is not something you want to count on.
- Self-insurance: Few people have sufficient
savings to self-insure against disability.
Pat Curry is a freelance
writer based in Georgia
If you'd like to make a comment on this
story,
e-mail bankrate editors.
-- Posted: Aug.
7, 2000
|
