Do you think that you may never suffer from a disability? It could cost you if you aren’t prepared.
One in four adults suffers from a disability at some point in their lives, so it can be a good idea to prepare for the possibility. Getting disability insurance can help you to minimize life disruptions in a worst-case scenario and can help you better handle your finances if you ever suffer from a disability.
If you think that you may need disability insurance, it’s important that you know what the different types are. In this guide, we’ll tell you about the different types of disability insurance.
Understanding Disability Insurance
Disability insurance can help protect you if you have an injury or illness of some kind and are unable to work.
While many people think that their risk of being injured is slim, it happens more often than most people realize. Very few people sustain major injuries such as spinal cord injuries or injuries that require amputation, but there are many other minor injuries that can prevent someone from working as they normally do.
Getting disability insurance will help protect you in the case of an accident and will help you stay in good financial standing. If you’re unable to work due to a disability then the insurance will cover a certain portion of your salary and will make up for the lost income in either the short-term or the long-term.
Short-term disability insurance is a type of insurance that will replace a percentage of your income for a short amount of time. Typically short-term insurance will be offered when you’re unable to perform your “own occupation” or your current job.
This type of disability insurance will be used in case of an accident, injury, or illness that will put you out of commission and make you unable to work for a limited period of time.
Short-term disability insurance will typically only lasts between 3 to 6 months. These benefits can be paid for a maximum of two years total. The waiting period for these policies will usually be between 0 and 14 days.
A lot of employers offer short-term disability policies as a benefit to employees.
Exactly like it sounds, long-term disability insurance will cover an individual for a much longer amount of time than short-term policies. Long-term insurance will typically be suitable for any occupation disability.
The waiting period will typically take between several weeks and several months. Only then will the policy will begin to pay.
Unlike a short-term policy, there is no limit to the length of coverage. Coverage may last for several years or for the rest of a person’s life.
Making the Decision to Get Disability Insurance
If you want to be prepared for injuries and financial setbacks, be sure that you know what the different types of disability insurance are. You may find that it’s well worth getting disability insurance if you want to have minimal difficulties when suffering from a disability.
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