Women are a huge part of the labor force. Currently, in the US, 58.4% of women are contributing to a plethora of industries. However, the ratio of working women has decreased since the Covid-19 pandemic because the female population is experiencing extra work pressure than men from employers, resulting in burnout. Moreover, the risk of disability and poor disability insurance coverage is another factor contributing to women leaving their jobs.
What Is Disability Insurance?
Disability insurance provides benefits to the policyholder who is physically or mentally incapable of performing the primary tasks of their job. A disability insurance plan usually covers 50% to 70% of the gross income. However, the terms and conditions for each plan vary. So, you have to carefully read out the policy terms to learn the eligibility criteria for the plan. Taking this initiative can help overcome financial anxiety.
Disability Insurance and Women
Compared to men, women are more likely to face injury and disability in their working years. According to data, a 35-year-old female is three times more at risk of becoming disabled for 90 working days than a male of the same age group.
Most companies do not provide disability insurance plans, so it is essential for women to sign up for a suitable policy. In addition, you must understand the reimbursement amount the insurance company will pay after the claim. This is because insurance plans pay less reimbursement to women than to men. Women also have to pay 40% to 50% more disability insurance premiums in comparison to men.
For example, if you are a physician or healthcare provider, you are more likely to experience a disability before reaching retirement age. This may be due to elongated working hours, excessive work pressure, and managing work-life balance. Therefore, you need to calculate the physician disability insurance cost and review the reimbursement amount you will be eligible for after the claim.
Things to Consider When Choosing a Disability Insurance Plan
Choosing the right disability insurance policy is a great way to gain financial support in case of permanent or temporary disability. As a woman, you need to pay more attention to choosing a disability insurance plan to ensure the reimbursement amount is justifiable for the insurance premium. Therefore, make sure to consider these points when selecting a disability insurance plan:
- Choose a policy that is focused on your occupation. Otherwise, the insurance provider can reject your claim by saying you are capable of working in other industries. You will be eligible for benefits in the occupation-specific policy if you are unable to do the job you previously had.
- Some disability insurance plans do not or barely cover mental health and behavioral health problems. Therefore, check to see if your policy provides coverage for mental health.
- Make sure to get a non-cancelable policy, so your premium cost and insurance coverage do not change or fluctuate over time. You can also get a policy that waives the premium after the claim.
Wrapping Up
Having a disability that prevents you from working can hugely impact your economic position, but this situation can be improved by signing up for a disability insurance plan. However, each policy differs for men and women. As a woman, you have a higher chance of encountering disability during job fulfillment. Therefore, you must review the premium, reimbursement, benefit, and claim clause to ensure your disability insurance plan provides good financial support.
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