The Hidden Value of Social Security Disability Insurance: Why It’s Important During Benefits Enrollment
Having the proper protections in place should be important to everyone, but early planning is particularly important for women. With a broader variety of female-specific needs, finding suitable insurance options to better secure the future can be challenging.
I’ll share some key considerations to help explain why women should start planning for insurance protection now. Let’s get started.
What You Need to Know: Disability Insurance for Women
Disability Insurance provides income protection in the event that you become disabled and are unable to work due to a sickness or injury. If you experience a disability that prevents you from working, disability insurance can provide you with a percentage of your income, typically ranging from 50% to 70%, for a specified period of time.
There are two main types of disability insurance: Short-term disability insurance provides coverage for a limited period of time, usually up to six months, while long-term disability insurance provides coverage for a longer period of time, it can be for several years or even until retirement age.
Disability insurance can be purchased as an individual policy or as part of a group policy through an employer. It is important to consider disability insurance as part of your overall financial plan to protect your income and provide financial security in the event of a disability.
Did you know that disability insurance costs can be higher for women than men?
This gender gap consists of various factors, including that women are more likely to seek medical help while men more frequently avoid or delay medical attention. Other factors can be genetics, hormones and environmental factors. With this in mind, it is even more important for women to start planning ahead. The sooner you sort out your insurance policies, the cheaper and more lucrative they can be.
For example, if you try and sign up for a new contract after developing a condition, it’s likely you won’t be able to get coverage for that specific illness. This is called an exclusion from coverage and can continue to impact your policy, even after that condition has passed.
Four conditions that can modify disability insurance are as follows:
- Planning for a family
- Gynecological issues
- Mental health history
- Musculoskeletal disorders
What You Need to Know: Life Insurance for Women
Life Insurance is one of the best protections you can put in place to secure your family’s future.
Life Insurance is a contract between an individual and an insurance company. It provides financial protection to the insured’s beneficiaries in the event of the insured’s death.
The individual pays regular premium payments to the insurance company, and in exchange, the insurance company provides a lump-sum payment, known as a death benefit, to the named beneficiaries upon death. The beneficiaries in this context are usually a spouse, children, or other loved ones.
There are two main types of life insurance: term life insurance and permanent life insurance. Term life insurance provides coverage for a set timeframe, typically ranging from 10 to 30 years. Permanent life insurance, on the other hand, provides coverage for the individual’s life and can also build cash value over time.
Life insurance can help provide financial security for loved ones in the event of the insured’s unexpected death. It can be an important part of an individual’s overall financial plan to protect their loved ones’ financial well-being. It’s designed to substitute your income or sustain your loved ones in the event of your death, and despite its importance, it’s often something women don’t think about.
In a lot of traditional family dynamics, women stay at home or work less often to raise their children. Many women don’t realize that insurance providers view this as valuable work and covering those essential caring responsibilities should be considered when obtaining this type of protection.
Did you know that life insurance costs for women are traditionally lower than their male counterparts?
Generally, life insurance fees are lower for women because they live longer. However, just like disability insurance, life policies present similar issues when it comes to assessing pre-existing or female-specific conditions. Instead of excluding certain conditions from your coverage, insurance providers may rate the premiums which means you could pay more for protection.
Some factors that can impact your rates include:
- Elevated labs (high cholesterol or blood pressure).
- Abnormal height or weight.
- Family history of cancer, particularly breast cancer.
- Mental health challenges (more common for women after pregnancy).
- Gestational diabetes.
While some of these factors apply to men, it’s essential to be aware that they typically occur more often in women and can certainly make insurance premiums more expensive. By planning early before having children, you can reduce your rates significantly.
Start Planning Early
As you can see, many unique factors make it more important for women to start early when it comes to insurance planning.
Below are some tips for kickstarting the planning process.
Source a selection of quotes
Doing your research is a vital part of insurance planning, mainly because different providers will offer you different benefits. Make a list of all the policies you’re considering, noting their prices, premiums, and any exclusions you should be aware of.
Carefully review each policy
Once you’ve got an initial list drawn up, it’s a good idea to start reading through your options in greater detail. At this stage, it might be wise to consult a family planner or even a friend with some added expertise if you want additional insight or direction.
Plan as a family
No insurance decision should be made in a rush, so take the time to plan as a family. If your partner already has their insurance policies ironed out, compare them to identify what’s covered and how it measures up against your own needs. The critical aim of insurance is to protect the people you love, so make sure they’re involved during the process.
If you’re yet to have children or plan on having more, it might be wise to think about insurance first. That way, symptoms associated with pregnancy like weight gain, diabetes, or mental health challenges won’t impact your coverage.
Amber’s Pro Tip for Planning
Just take action, even if they’re small steps. Planning today for your financial future can reduce stress and offer some comfort. Pre-planning is better than being reactive, and it puts you in control of your financial future.
It may feel daunting, but any step you take towards organizing your insurance policies and savings habits can make a big difference. Updated and organized plans shows leadership to those you’re considering in your legacy planning. Thanks for reading!
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