Disability Insurance Disability can be more disastrous financially than death. If you are disabled, you lose your earning power, but you still have living expenses and often huge expenses for medical care. Disability insurance helps you replace lost income. Many employers offer some type of disability insurance coverage for employees, or you can get an individual disability insurance policy. There are two types of disability policies: short-term disability (STD) and long-term disability (LTD). Short-term disability policies have a maximum benefit of two years, while long-term disability policies have benefits that can last the rest of your life. When purchasing disability insurance, ask: How is disability defined? Some policies consider you disabled if you are unable to perform the duties of any job. Better plans pay benefits if you are unable to do the usual duties of your own occupation. When do benefits begin? Most plans have a waiting period after an illness before payments begin. How long do benefits last? After the waiting period, payments are usually available till you reach age 65, though shorter or longer terms are also available. What dollar amount is promised? Can benefits be reduced by Social Security disability and workers compensation payments? Are the benefits adjusted for inflation? Will the policy provider continue making contributions to your pension plan so you have retirement benefits when the disability coverage ends?
Posted on: Wed, 21 May 2014 17:45:53 +0000
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