What is Disability Insurance?
Disability insurance provides a portion of income when a worker is injured or ill and cannot work. Disability insurance is also referred to as disability income insurance.
What Does Disability Insurance Cover?
Disability insurance is intended to cover some of a worker’s income. The payments provide wage replacement and are paid out to the worker for the duration of the disability. It can cover a partial disability and a total disability. It does not cover medical care, prescriptions, or other services you may need. While on disability, it is a good idea to maintain your health insurance coverage if you have it. Also, if you are over the age of 65, you cannot get disability insurance.
How Much Does Disability Insurance Cost?
The cost of disability insurance varies and is calculated based on your age, salary, and occupation. The sooner you buy disability insurance; the lower your premiums may be. The average cost of disability insurance is 1 to 3% of your annual gross income. InsureOne works with the top carriers in the country to get you disability insurance that is affordable and reliable.
Types of Disability Insurance
There are two types of disability insurance: short term disability (STD) and long term disability (LTD)
What is Short Term Disability?
Short term disability offers income protection if you are unable to work for a short amount of time –usually about three to six months. A typical short term disability policy provides 60-70% of your base salary. There is usually a waiting period before you can start receiving benefits after becoming disabled.
Here are a few reasons why people receive short term disability:
- Minor injuries
- Back disorders
- Fractures or broken bones
Short term disability does not cover pre-existing conditions, and it does not allow for time off to care for a sick family member or adopting a child. The Family Medical Leave Act (FMLA) covers that. It also does not protect your job.
There are also a few states that have state short term disability programs. Those states include California, Hawaii, New Jersey, Rhode Island, and New York. Employers in these states have to enroll their employees in a short term disability program.
What is Long Term Disability?
After short term disability runs out, long term disability kicks in and provides a portion of the pre-disability income for as long as you are disabled. Long term disability typically pays 50-70% of your salary until you can go back to work up to a few years. Some policies pay until age 65 if you are still disabled.
Here are a few conditions that would qualify for long term disability:
- Injuries from an accident
- Bi-polar disorder
- Chronic Fatigue Syndrome
- Brain injury
- Heart disease
- And much more
How Do I Get Disability Insurance?
If you cannot get disability insurance through your state or employer, you can purchase private disability insurance through InsureOne. Don’t wait until it’s too late to get the coverage you may need. Disability insurance should be purchased before you get sick or injured as a protective measure. InsureOne does the comparison shopping for you to make sure you get affordable and reliable coverage. You can request a free disability insurance quote online or call us at (800) 836-2240 and begin your coverage today.