Disability Insurance offers financial security to individuals who are unable to work due to an injury or illness. It provides a portion of your income for a specified period, allowing you to cover your living expenses and maintain financial stability. In essence, it acts as a safety net, protecting you and your family from the unexpected.
There are two primary types of disability insurance: short-term and long-term.
Short-term disability insurance is designed to provide coverage for a shorter period, typically between 3 to 6 months, but it can vary depending on the specific policy. This type of coverage is suitable for temporary disabilities, such as those resulting from pregnancy or a short-term illness.
Long-term disability insurance, on the other hand, offers coverage for an extended period, potentially years or even until retirement age. It is intended to provide financial support for individuals facing more severe or permanent disabilities that prevent them from working for an extended period.
Disability insurance functions by replacing a portion of your income if you cannot work due to a covered illness or injury. The benefit amount you receive is typically a percentage of your pre-disability income, usually ranging from 60% to 85%. However, it’s important to note that the specific percentage and maximum benefit amount can vary depending on the policy and insurer.
When you experience a qualifying disability, you need to file a claim with your insurance company. The insurer will then review your claim and supporting documentation to determine your eligibility for benefits. Once your claim is approved, you will start receiving regular payments based on the terms of your policy.
Eligibility criteria for disability insurance can vary depending on the insurer and the type of policy you have. However, some common factors considered include:
Disability insurance offers several benefits, including:
