Introduction to Disability Insurance
Disability insurance is a kind of policy that is designed to protect one’s income should he or she become critically ill or injured and, as a consequence, be unable to work for a certain period of time. It has coverage for an injury that is sustained to any part of your physical body, including vital components such as eyesight, hearing, limbs and hands, and even mental incapacitation.
Who needs it?
Just about anyone can benefit from this kind of policy coverage. This opinion is backed up by the sobering fact that anyone can become injured or sick at any time and this can also mean the inability to perform employment duties, which can leave the uninsured out in the cold. This type of coverage is normally provided to independent business owners and the self-employed, but both employees and even those who presently are in between jobs can also make great use of it.
How it works
Payout levels will fluctuate in tandem with the levels of coverage chosen. Each policy is renewable annually. Should one become ill or injured and, as a result, be unable to perform his or her work duties, a claim can be filed for financial compensation from the insurance provider. The extended payouts will normally go on until one is once again well enough to resume work duties.
Kinds of coverage
There are generally two kinds of disability insurance policies: Short-Term Disability (STD) and Long-Term Disability (LTD). STD policies normally have 14-day waiting periods with a maximum period of benefits of no more than two years. LTD policies will usually have a waiting period of a few weeks all the way up to several months. The maximum benefit period for this coverage ranges from three years up to the balance of your remaining lifetime.