What happens if the accident or illness doesn’t kill but leaves you unable to work, and you do not have the right insurance policy in place? It is more likely that someone will suffer a disabling condition lasting longer than 3 months than dying before age 65. Perhaps our greatest asset is the ability to earn an income. Advances in medicine have resulted in longer life expectancy and many conditions that previously resulted in death now, at the very least can be dramatically postponed.
More than 90% of disabilities are the result of an illness, typically not covered by workers compensation. What can be done? The answer is getting the right disability insurance possible.
Types of Disability Insurance
Short Term Disability
- An insurance plan to replace a portion of income during the initial stage of a disability, essential for families living paycheck to paycheck.
Long Term Disability
- A disability insurance plan designed to cover a portion of your income after a deductible or waiting period for an extended period of time.
Employer Group Disability
- Disability insurance plans offered by some employers to replace a portion of income for a specified period. It may be noncontributory, in which case the employer pays the entire premium. Employer plans vary considerably. Many plans set the benefit on a set percentage salary only up to monthly maximum, excluding earnings from commissions or bonus. Plan details should be available in your employer handbook or HR department.