According to the Council for Disability Awareness, one-quarter of all 20-year-olds will be out of work for at least a year with a disabling condition before they reach retirement age. Without disability insurance, an injury or illness that inhibits job performance could result in severe financial hardship.
Contact Two Rivers Benefits Consultants in Tinton Falls, New Jersey, for more information on disability insurance coverage.
What Is Disability Insurance?
Disability insurance can provide financial protection if you experience an illness or a permanent or temporary disability that prevents you from working. It’s a contract between you and your insurance company. In exchange for your premiums, your insurer agrees to provide a monthly benefit while you’re disabled. The duration of your coverage will depend on the type of coverage you choose. Disability insurance can provide peace of mind and financial stability if you suddenly cannot earn money.
What Is the Difference Between Short- and Long-term Disability?
A disability can last from several days to the rest of your life. Cancer, pregnancy, mental illness and musculoskeletal disorders are common causes of disability claims. To ensure you have sufficient coverage, consider the benefits of both short- and long-term disability coverage.
- Short-term disability (STD) coverage can help pay some of your lost income if you’re temporarily out of work. These policies may provide coverage for up to two years of missed work, but a few months to a year is more common. Depending on your insurer, the waiting period may vary from 0 to 14 days.
- Long-term disability (LTD) coverage can help pay some of your lost income for a longer period. Depending on your policy, your coverage could range from several years to retirement age. The waiting period for long-term disability coverage is typically longer and may take several weeks.
The amount of income replacement you receive may be flexible with both policies, but STD insurance usually provides a greater percentage of your lost income. In some cases, STD insurance may pay for up to 70% of your lost income. LTD insurance typically pays between 40 and 70%. Review your policy carefully or ask your insurance agent for more information about coverage amounts.
How Can I Get Disability Insurance?
We’re here to answer your insurance questions. Contact Two Rivers Benefits Consultants to learn more about our disability insurance benefits and to get a disability insurance quote today.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.