Do I Need Credit Disability Insurance?

[Yusra3]

Do you have a disability? If so, your life can be changed forever. The medical bills and other expenses that come with a disability can be overwhelming, and it's important to protect yourself from financial hardship. Disability insurance can help you cover the cost of unexpected and expensive medical bills when you're unable to work.

But before you buy disability insurance, there are a few things you should know:

1. You may not qualify for disability insurance if any of the following apply: You already have health insurance (including Medicare or Medicaid), your health conditions are covered under your employer's plan, or your employer provides benefits for long-term sickness or injury.

2. You must have a chronic condition that is expected to last at least 12 months (or 36 weeks if it's terminal). Chronic conditions include heart disease, cancer, diabetes, epilepsy and other neurological diseases.

3. Your income must be low enough to qualify for Medicaid in most states. This is because many states require companies that offer disability insurance to collect information about the employee's income before issuing coverage.

 

[Jasz]

Credit Disability Insurance (CDI) is a type of personal or group disability insurance that pays benefits when you are unable to work due to injury or illness. Benefits are based on your income and can be paid for up to five years, depending on the policy.

CDI is different from health insurance because it covers only short-term periods when you’re unable to work. It does not cover long-term disabilities or chronic conditions such as heart disease or diabetes.

CDI policies pay benefits if you’re unable to work due to an accident or injury that occurred while at work. They also pay benefits if an employee dies while at work and the employer can prove that they were disabled prior to death. CDI policies don’t pay benefits if an employee was not working at the time of illness or injury, unless they were working in a hazardous occupation.

You can purchase coverage from an insurer through an employer’s group health plan. You can also get coverage through a private insurer that offers it on its own.