Disability Insurance is designed to protect one’s income should they become critically ill or injured and, as a result, be rendered unable to work for a certain time. It has coverage for injury to any part of your physical body, including such critical components as eyesight, hearing, limbs and hands, even mental incapacitation.
Who Needs It
Just about anyone can benefit from this kind of coverage since anyone can become sick or hurt any time and as a result be unable to perform their work duties. This kind of policy can be provided to those who own their businesses, for those who are self-employed, employees and even those who are presently not working. It is comprehensive and a potential boon to all.
How It Operates
Payout levels will vary depending on the choices made for the levels of coverage. Each policy has an annual renewal and, should one become sick or injured and no longer able to perform his or her employment duties, they can file a claim for financial compensation from the insurance provider. The extended payouts go on until the person is once again able to resume work duties as before.
Types of Coverage
There are generally two types of disability insurance coverage. There is Short-Term Disability (STD) and Long-Term Disability (LTD). STD policies will usually have 14-day waiting period with a maximum period of benefits provided for no longer than two years. LTD policies will usually have a waiting period of three weeks up to several months with a maximum benefit period ranging from three or so years up to the remainder of one’s life.