We all know how important typical health insurance is, but did you know that disability insurance is just as important? In the event that you are injured at work and unable to work, disability insurance will give you peace of mind, and you can still care for your family. Although we would like to think that we always work safely, accidents happen and you need to make sure that you have all the angles covered in case of an accident. If you become ill or injured at work and, as a result, can not return to work, there are a couple of options that will replace the loss of income. These types of disability insurance will not completely replace your income because they want you to have an incentive to return to work once you recover.
Social Security benefits are paid when your disability is expected to last at least 12 months. In most cases, this occurs when you can not obtain gainful employment and you must remain unemployed for the entire duration of your leave. The disability paid by the employer is required by almost every state in the United States. This type of disability insurance is deducted from your paycheck and is available to you in the event of an accident. When you are looking for disability insurance policies, it is important to understand what they mean. While the two policies available are for the disabled, they both cover a different amount of time during which you will be covered and when you will begin to receive your compensation.
A short-term disability policy means that you will be covered for no more than 2 years. With this policy, you may have to wait up to 14 days before you begin receiving compensation. A long-term disability policy is a bit different. Disability compensation will not activate for several weeks, sometimes for a couple of months. However, long-term disability will cover you for a longer period of time and, sometimes, for the rest of your life.
In addition to having the two different types of insurance policies, there are also two different protection features. You are offered protection to ensure that you will not be treated unfairly due to your inability to work. Non-cancelable means that, for no other reason than the payment of your premiums, you can cancel your policy. With this tye of policy, you will close your premium and not risk a decrease in benefits. On the other hand, a guaranteed renewable policy means that the same benefits will be available each year. The only way to increase your premium is if you also increase each insured within the same qualifying class as you.
While there are many options when choosing disability insurance, these are the most popular selections. It is important to analyze all available options when choosing a disability insurance policy to make sure you know what you will receive in the event of an accident or illness. Investigate your options to find the best option for you and your family.