Disability Insurance

Disability insurance is a lifesaver when a person is unable to work because of an injury. It provides financial support during a tough time.

Disability insurance, or “health and accident insurance,” pays the policyholder a percentage of the payment they lose as a result of being unable to work. Any event that causes a loss of work for an extended period is a part of this policy’s purpose. This kind of insurance is usually available through an employer, but it can be purchased individually the same as any other insurance.

Disability insurance, unlike Social Security or Worker’s Compensation, must deliberately be purchased by the policyholder. Social Security benefits come from the government and Worker’s Compensation comes from the employer because it is specifically for on-the-job injuries.

If you think this insurance is right for you, make sure to compare policy costs. There are some low cost policies available in the insurance marketplace. Shop around because different insurance agencies offer different benefits at different prices. You also want to know how much of a payout you can receive. For example, the percentage of your income paid can range from 45 percent to more than 60 percent.

You might a few months before your coverage starts. You can face waiting times from a month to three months before benefits began. If you are disabled, then you must submit proof of your disability and the estimated time you will be off from work.

Short-term disability insurance coverage has a shorter waiting period, usually a week or two. However, short-term insurance only pays benefits for three to six months. Long-term disability insurance has a longer waiting period, but supports the policyholder for a longer time. In fact, long-term benefits may continue for years or until retirement and the government intervenes. Some people have short-term coverage that is effective until long-term coverage begins.