Disability Insurance protects your most valuable asset during your working years, your ability to earn a living.
Statistics show that our chances of becoming disabled are greater than dying between the ages of 25 & 45, yet many people overlook adding affordable disability insurance to round out their protection portfolio.
During the time you are unable to work due to a qualifying disability (illness or injury), the replacement of your regular income through the monthly benefit provided by disability insurance helps to maintain your pre-disability lifestyle. Workplaces often provide standard short-term disability (STD) and long-term disability (LTD) insurance to meet federal guidelines. Individual disability income insurance can be customized to meet your needs and considers your occupation, age, income and other factors in determining your cost and monthly benefit payment amount.
Individuals not offered disability through their employer and self-employed individuals who desire disability coverage, can purchase policies.
Those who have disability insurance through their workplace, may wish to consider a “wrap around” disability policy to supplement their employer provided coverage.
Short Term Disability generally allows for income payments to begin after about a two-week waiting period and will continue to pay until he/she recovers or maxes out the benefits–usually anywhere between one month to two years, depending on the policy.
Long Term Disability generally allows for benefit payments to begin after a 90-day waiting period, although it could be longer depending on the policy. These plans will continue to pay far longer than a Short Term Disability policy. Long Term Disability policies can pay for a few years or up to age 65.