Disability Coverage

Disability Coverage

Disability insurance policies are intended to pay part of your earnings should you be become hurt in an accident or are not capable of working due to an illness. There are two particular policies that are accessible: long and short-term disability.

Short term disability pays a part of your wages should you become incapacitated due to injury, for up to one year. Some employers pay this benefit on their employees’ behalf or others offer it for employees to purchase.

If you have a pre-existing medical condition, the time to enroll is at the initial time of enrollment when a medical examination is usually not required.

Replacement of wages is only fractional; insurance underwriters, as well as your employer, want you back at work as soon as is humanly possible. Usually there is a waiting period of about 14 days in which one will not obtain a payment.

Long term disability policies are purchased to replace what your probable earnings would be from the time you become incapacitated until age 65 when Medicare would be obtainable.  For instance, if you are 55 and earn $40,000 per year, it is recommended you purchase a policy for at least $400,000.

You are not entitled to long term disability if:

(1)  You are or are soon to be pregnant

(2)  Earn under $18,000 per year

(3) are unemployed or,

(4)  You are required to carry a firearm for your job.

On an average, the waiting time for long-term insurance to commence is at least 60 days and can go up to as far as a year.

Disability insurance is a significant part of your overall insurance coverage therefore if your employer offers it, it would be highly advantageous and you should without a doubt regard it as it as an astute investment.


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