Disability insurance is a key protection for families and individuals in the event they are unable to work for a period of time. After an accident or illness, your ability to return to work may be delayed for weeks, months or even years. Disability insurance replaces lost income to prevent you and your family from going into debt or exhausting your savings.
Having short-term disability insurance, long-term disability insurance and long-term care insurance can reduce the burden of a lengthy illness or injury recovery on family and community. Persons receiving benefits under these policies are able to continue paying bills and purchases as usual and are able to maintain financial independence. Among the expenses covered by disability insurance:
- Mortgage payments
- Utilities (gas, water, electric)
- Groceries
- Car loan payments
- Other insurance premiums
- Routine needs and purchases
Though many employers provide some form of disability insurance, supplementing or expanding coverage can protect you and your family at a relatively small cost.
Short-Term Disability
Short-term disability plans cover the loss of income from a temporary injury or illness. Though policies differ, benefits are typically available after two weeks. Short-term disability protection will cover a portion of the income of the beneficiary, often between 50% to 75% depending upon the policy and state laws. Short-term disability benefits will run out after a period of time, generally a few months.
Long-Term Disability
Coverage for a long-term disability will pick up when the insured person has been unable to work for several months, often after a short term disability plan has run out. Benefits replace income lost from being unable to work, often between 50% and 75% of income before the illness or injury. The duration of benefits for a long-term disability policy vary from 2 years to retirement age.
Long-Term Disability and Social Security Disability
Long-term disability policies can provide a consistent level of benefit for the duration of the disability or the insured may decide to allow benefits to be reduced when social security disability benefits begin. Choosing to allow benefits to be decreased should government benefits be provided can reduce the premium costs.
The independent insurance professionals at the O’Connor Insurance Agency are well versed in the wide range of policies and plans available for individuals or as part of a benefits package provided by employers. Contact us for a review of options available for short-term and long-term disability policies. We’ll tailor a coverage package that will fit your needs and budget.
