Disability insurance is designed to protect people who can no longer work due to a severe injury or a devastating and often debilitating illness. Not being able to live a normal life is a problem all of us would certainly wish to avoid, but nevertheless accidents happen to all of us at one time or another.
When a person is deprived of his or her income and needs disability benefits as a result of injuries or diseases, this is where disability insurance comes into play. Unlike the normal workplace benefits, disability benefits give coverage for personal expenses that often must be paid over a long period of being out of the workplace. There are several types of disability policies for persons who either can no longer perform specific work functions or are unable to work at all. To choose the proper coverage, one must look at several factors, such as the potential severity of a disability and the kind of payment provisions offered. One can elect to receive payments directly from an employer, from the local Social Security office or from a private insurance company.
Getting injured on the job is one of the most common causes of disability. To avoid litigation, employers often provide workers’ comp insurance to their employees who might one day need long-term monetary support. As an employee in this situation, he or she would obtain financial assistance for lost wages, medical costs and the day-to-day expenses. Before compensation is released however, the employer must first provide the amount of income that the worker normally makes, the time span of the payments to be received and the types of injuries sustained.
No matter if you are single or married, having disability insurance will help with the replacement of part of your income if you are unable to work due to illness or a temporary/permanent disability. Depending on the policy, there can be a period of time that must first be met before payment will be initiated following the filing of a claim.
A group disability insurance policy will typically only pay out part of your usual income. Note that by adding a supplemental policy you can help to recover some of what falls through that gap. Also note that most accidents happen on the job, so you could be eligible for worker’s compensation as well.
There are two different kinds of disability insurance – short and long term. Short term insurance pays out benefits for a limited period of time period after you sustain an injury or become sick and unable to work. With long-term coverage, one must endure a waiting period before he or she is eligible for the benefits, but the duration of payment is longer. Note that you can opt to have both kinds of insurance to cover both possibilities. It is normal that many folks will receive some kind of an injury or illness that will cause a stoppage of their normal working life. To stave off adverse financial consequences, it is vital to fully comprehend the benefits of disability insurance and then obtain it! In this country, there are disability programs aligned with Social Security and Supplemental Security Income that provide payments to those who qualify. Learn how you can take full advantage of this kind of insurance to continue enjoying income even during the most challenging of situations.