Disability Insurance is designed to protect your income, and therefore your lifestyle in the distant future too, in case of any unforeseen circumstances that cause you to be unable to work.
What is Disability Insurance?
Some details to keep in mind:
- A disability is defined as the inability to perform your job due to injury and/or illness.
- Disability insurance provides monthly payouts when it is determined that you qualify to receive the benefits after an illness or an accident.
- Factors that determine the amount that you will be paid include factors specific to you, your health, your income and your work situation as well as the amount that you chose for coverage when purchasing the policy.
- Financial aid will continue under short-term and then long-term disability insurance for as long as you are deemed not being able to do your job, while being under a physician’s care and unable to work after being diagnosed as such.
Disability insurance policies may be available as a benefit package from an employer. If you have a small business with two or three employees you can also purchase disability insurance that would be full of benefits for you and others. Both short-term and long-term plans will start protecting you immediately after an accident without any waiting period and seven (7) days after an illness. The duration for short-term disability definition and length of payments is 90 days, and then any disability coverage needed after 90 days, a long-term disability insurance policy will take over paying for your lifestyle expenses.
Most group plans cover normal maternity as any other illness and will pay benefits. However, there is a waiting period of 270 days after purchase and before being eligible for maternity benefit.
Individual plans are available to purchase and will begin to pay after 14 or 30 days and would pay for 90 days, 180 days, one year, or two years. Even though, technically, short-term ends at the end of 90 days, the plans are designed for individuals who are seeking minimal protection.
(Note: Individual plans do NOT cover pregnancy except if it due to complications of a pregnancy.)
Signing up and paying for such a policy now will take your current income into consideration. The amount that you need to pay per month is determined based on several factors, and then, in case it is ever necessary to use the insurance policy, the policy will provide you with financial aid for up to two years based on the benefit package chosen.
Are You Covered Through Your Job?
Some employers pay for or offer disability insurance, but it may not be what you personally need. So, it’s recommended that you seek advice from an insurance adviser and broker knowledgeable about disability insurance policies available and that will look at your personal circumstances. You might benefit from investing in a supplemental disability insurance policy to fill in the huge gaps in group coverage.
What is Disability Insurance? – Learn More & Get Insured
Our experienced advisors are able to answer all of your questions and help you along the way. We can customize a Short-Term Disability Insurance policy for to meet all of your needs and help you achieve full financial protection. Call us at (800) 788-8921 or fill out our brief Contact Form to be called by an advisor directly.