There are times when you simply cannot work due to an injury, illness or an accident, so a disability insurance policies have been invented in order to support you during these times and pay you part of your wages. There are two types of policies out there: long-term disability and short-term disability.
While you on short term disability, it will pay part of your wages for up to one year. In some places employers pay for benefit, while in other places employees have to pay on their own.
If you have some kind of medical condition, you should enroll during the inital enrollment period, because during that time the medical exam is not required.
As you understand, they pay only a portion of your wages, since the underwriters and your employer want you back at your desk as soon as possible.
With long term it works a bit different. It is purchased to replace what you potentially will be earning from the time you become disabled until the age 65, since at that time the Medicare coverage would kick in.
For example, if you are 55 and you making $50,000 per year, you should look at the policy for $500,000.
You cannot qualify for long term disability policy if:
1 – you are planning to become pregnant soon,
2 – you make less then $18,000 per year,
3 – you are not working and/unemployed
4 – if you have a job where you are required to carry weapon on you at all times.
The long-term insurance policy kicks-in 60 days and sometimes as much as a year after you go on disability.
The disability insurance is an important insurance coverage plan, which you should consider at the time you enroll for your benefits. There’s some cost to it, but it is a wise investment and you will sleep better at night, knowing you are protected in case anything serious happens.