Disability Insurance Policies
We've all had illnesses that keep us away from our job for several days. Fortunately most of us are able to utilize sick days or vacation time to cover any days we miss. But what happens when we need to be out of the office for several weeks or months? Most of the people in the U.S. do not have enough savings to cover more than a few weeks of expenses in the event of an illness or injury that keeps them out of work.
Disability coverage protects a portion of your income in the event that you are unable to work. Typically covering up to 60% of your income, it can help you avoid financial disaster. As part of your benefits package, employers often offer both short- and long-term disability coverage.
Short-term disability (STD) covers your pay in the event that an illness or injury keeps you out of the office for a limited time. Depending on your policy, coverage will begin anywhere from one to fourteen days after you suffer from a condition that prevents you from working. Short-term disability covers most or all of your incomes while you are out on leave.
Long-term disability (LTD) provides a portion of your income when you are out of the office for an extended period of time. If your illness or injury is work-related, Worker's Compensation may pay coverage, but LTD is for non-work related conditions.
Disability policies do not cover medical needs, but provide you with income to cover other expenses including day to day bills. Although Social Security Disability Insurance (SSDI) is also available, it could take several months for approval and even longer for payments to start.
Disability is a key part of your insurance coverage. It may allow you to breathe a little easier knowing that you will have some income in the event of an unexpected health issue.
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