How do Short And Long Term Disability Insurance Work
What is Disability Insurance
Disability insurance is a type of insurance that helps provide financial protection in the event that you become unable to work due to a disability. There are two main types of disability insurance: short-term disability insurance and long-term disability insurance. Here's a brief overview of how each one works:
Short-Term Disability Insurance:
Short-term disability insurance is designed to provide income replacement for a short period of time, typically a few weeks or months. It is often offered as a benefit by employers or can be purchased individually.
To be eligible for short-term disability insurance, you typically need to have a qualifying event that prevents you from working. Examples of qualifying events may include a serious illness, injury, or pregnancy.
Once you have a qualifying event, you can file a claim for short-term disability insurance. The insurance company will review your claim and, if approved, will start paying you a percentage of your salary (usually around 50-70%) to help cover your living expenses while you are unable to work.
The length of time that you receive benefits from short-term disability insurance will depend on the specific policy you have. Some policies may provide benefits for a set number of weeks, while others may provide benefits until you are able to return to work.
Long-term disability insurance:
Long-term disability insurance is designed to provide income replacement for a longer period of time, typically several months or years. Like short-term disability insurance, long-term disability insurance can be offered as a benefit by employers or purchased individually.
To be eligible for long-term disability insurance, you typically need to have a qualifying event that prevents you from working for an extended period of time. Examples of qualifying events may include a serious illness or injury that is expected to last for an extended period of time or a disability that is expected to be permanent.
Once you have a qualifying event, you can file a claim for long-term disability insurance. The insurance company will review your claim and, if approved, will start paying you a percentage of your salary (usually around 50-70%) to help cover your living expenses while you are unable to work.
The length of time that you receive benefits from long-term disability insurance will depend on the specific policy you have. Some policies may provide benefits for a set number of years, while others may provide benefits until you reach retirement age.
It's important to note that both short-term and long-term disability insurance policies have exclusions and limitations, so it's important to carefully review the terms of your policy to understand what is covered and what is not.
Is Disability Insurance right for you?
Overall, disability insurance can provide financial protection in the event that you become unable to work due to a disability. It's a good idea to consider purchasing disability insurance if you rely on your income to support yourself and your family, as it can help ensure that you have the financial resources you need if you become unable to work. Disability Insurance may make sense only on a case-by-case basis, and with so many types of coverage, it may be difficult to know which one is right for you. The experts at Monarch Benefit Advisors are here to help you find the right solutions for your needs. Feel free to contact us today.