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Disability Insurance

What is Disability Insurance?

The purpose of disability insurance is to pay out some or all of an employee’s salary in the event that person becomes disabled and is no longer able to continue working at their job.

Who is it for?

Statistically, at least twenty-five percent (one in four) workers are likely to become disabled sometime over the course of their lives. Disability insurance can help to offset and reimburse some of the wages lost in the event of an on the job accident or in the case of a long-term disease that would prevent you from working.

How does it work?

Your coverage would kick anytime a disability arises over the course of your working life, and could cover roughly seventy percent of your salary, depending on your individual policy.

Different types of coverage.

Depending on the severity of your disability, you may qualify for either short-term or long-term coverage. Short-term will usually cover a percentage of your lost wages for up to six months, while long-term can cover you for up to the remainder of your lifetime, depending on factors such as the nature of your disability and the type of coverage you or your employer carries. Individuals who are not covered by their employers are able to choose from several private options.

Major Benefits

There are several main benefits to this type of coverage. The main concern is that in the event of a workplace injury or debilitating illness, you and your family won’t have to worry about replacing your lost income right away. Another benefit is that, unlike Social Security, there are no age restrictions on who can receive payouts. If you’re working, you’re eligible for coverage. Many people find that the peace of mind they receive by carrying this kind of coverage, either through their employer or privately, far outweighs the monthly premiums.