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Disability Insurance

If you become injured and are not fit to work, disability insurance will help with financial support during this challenging period of time.

Disability Insurance is also known as “health and accident insurance,” and provides the policy holder a payment of a percentage of income lost due to injury or a covered condition. Any covered event that causes one to not be able to work for an extended period of time is a part of this policy’s purpose. This kind of insurance may be offered through an employer or it can be obtained individually, similar to the purchase of normal healthcare coverage. Unlike Social Security disability or Worker’s Comp, one must deliberately elect to purchase this kind of insurance. Social Security benefits are provided through the government and Worker’s Compensation is paid for by your employer- it is specifically for the treatment of injuries that happen at work.

If you determine that this kind of insurance is right for you, you likely compare policy costs out in the marketplace. Be careful not to misled by deceivingly low costs. Different terms affect pricing differently and each plan is unique. As an example, the percentage of your income that is paid out to you in the event of disability can range from only 45 to a over 60 percent. Often you can face long waiting times of anywhere from a month to three months before benefits are initiated. In the event that you are disabled, you are required to submit proof of your inability to work and the estimated time you will be required to take off of work.

There are two kinds of coverage that are mostly utilized. Short term insurance doe have less of a waiting period, usually a week or two, but only pays out benefits for three to six months. On the other hand, long-term disability insurance supports the individual for a longer period with the waiting period being a bit more long until coverage kicks in. Benefits may continue for years or until retirement and the government steps in. Often it is ideal to have short term coverage providing benefits until the long term coverage begins. As always with insurance, planning pays off.