Types of Disability Insurance

There are several types of disability insurance that keep you covered financially when you can’t work and earn your paycheck regularly.

Two major types of disability insurance include- 

1] Long-term disability 

Long-term disability insurance provides monthly benefits if you’re disabled and can’t work. To be liable for long-term disability benefits, your condition should restrict you from working for a minimum of two years. Long-term disability benefits can also be availed till one retires. It pays 60% of your monthly income and costs about 1% or 3% of your stipend.  The cost may vary depending on factors like age, benefit amount, working years, elimination period, occupation, etc. 

Long-term disability benefits are provided by the employer but sometimes people buy their own private LTD to get good coverage.  

You can qualify for Long-term disability only if your condition is severe enough that it blocks you from work for long periods of time. A few reasons to file an LTD include cancer, physical injuries, pregnancy, mental health, etc. The premium and benefits rely on the policy you choose. 

There are two broad categories under the long-term policy: 

A] Any -occupation disability insurance: It is applicable if you are unable to perform any job at all. When your disability restricts you from working not only at your own organization but even from pursuing other jobs; one is liable to any-occupation disability. It is generally quite difficult to prove you’re eligible for it. Nationwide long term disability claims lawyer, help with the process. 

B] Own-occupation: It pays you coverage if you are unable to work at your own job even if you are able to work elsewhere. 

2] Short-term disability 

Short-term disability also provides 60% of your income but it is only for a disability that hampers you from working for a short period of time for about one year. 

If your disability lasts longer than the said time period, the coverage payment will cease. Therefore, short-term disability plans can be paired with long-term plans since the elimination periods for short-term disability plans are way lesser than long-term disabilities.  So they can cover for you till the regular LTD begins. 

Long-term benefits can handle your finances for a lifetime and short-term work for one-year maximum. Without enough evidence of disability, you aren’t qualified to receive any. The benefits are a good investment because they greatly reduce the risk of a financial hitch if you become disabled.