Having disability insurance is important. Many adults choose to skip this type of insurance coverage due to the belief that it is not needed or it cannot be afforded. However, when faced with the odds, the statistics of an able-bodied working adult becoming disabled prove that going without disability insurance should not be an option. Although having disability insurance is essential, it is also essential to have the right kind of disability insurance for your particular situation.
Short-Term Disability Insurance
Short-term insurance is exactly what it states: insurance that covers a person when they cannot work for a short period of time due to an illness or injury. It can also be used in most cases by women when they are on maternity leave. The majority of short-term disability policies allow benefits to be used for three to six months before they expire. This type of insurance is commonly very affordable with annual premiums of less than $200. Some employers offer short-term disability insurance to their employees at prices that are less expensive than what would be purchased through a general insurance broker.
Long-Term Disability Insurance
Long-term disability offers financial security in the event that a person is unable to work for a long period of time after sustaining an injury or illness. This type of insurance is especially important for those who are the main breadwinner in the family household since losing the ability to earn a living could cause financial strain in the long run. Like short-term insurance, long-term insurance can also be purchased through a person’s employer. This option is usually the most affordable for people, though if your employer does not offer disability insurance, it may also be bought from an insurance broker.
Since, short-term and long-term disability insurance also work together, one should not be counted against the other in terms of coverage. In some cases, a person can draw from their short-term policy and if the need arises, can then draw from the long-term policy. In this case, it would be best to have both types of insurance at the disposal of the insured.
Before purchasing any kind of disability insurance, be sure to take the time to understand the definition of disability in the policy. Some policies may pay out only after it has been determined that it is impossible for the insured to work at all in any occupation, while others will pay out in the event that the policy holder is no longer able to perform the duties of their current position.
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