If you have had an illness that has kept you away from your job for a while, you would not be alone. For some there is the option to utilize sick time or vacation days to cover time missed. But what would happen if you needed to be out of the office or off the work floor for several weeks or more? It is a sad statistic that most people in the U.S. do not have the amount in their savings to pay for more than a few weeks’ expenses should there be an illness or an injury that might stop them from working.
Disability coverage is what protects some of your income should you be unable to work. It will normally cover up to 60% of your normal income and it can assist you in avoiding potential financial ruin. As part of a benefits package, employers will frequently offer either short or long term disability coverage.
Short-term disability will compensate you for lost pay should an illness or injury keep you out of work for a limited time. Policies vary, but coverage starts anywhere from a day to two weeks after a policyholder suffers from an issue that prevents him or her from working. Short-term disability will cover most and even all of your income while you are out recuperating.
On the other hand, long-term disability insurance pays the equivalent of a portion of your income while you’re off work for an extended amount of time. Should the illness or injury be work related, worker's comp may pay a portion, but long term disability insurance handles the non-work related conditions.
Though a disability policy won’t cover medical needs, it will give you the income necessary to cover other costs like day to day bills. Social Security Disability Insurance is also available, but it can take many months for governmental approval and for the payments even to begin.
Disability is an essential part of insurance coverage. It can give you the peace of mind to breathe a little easier in knowing that you financially protected should an unexpected health issue come about.
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