Disability Insurance provides a portion of income of working individuals who become ill or injured and unable to work.
Disability Insurance gives financial protection when accident or illness causes disability and person is not able to return to work.
Usually Disability Insurance replaces between 60% to 85% of your Regular income for a specified time if you can not work temporarily or are permanently disabled due to an injury or illness.
Long Term Disability Insurance
Long Term Disability Insurance benefits starts after the end of Short Term Disability Insurance if employee is still disabled.Upon approval employee will receive 60 – 70% of their regular income.The benefit period for Long term Disability Insurance is typically 2 years, 5 years or to age 65. Plans are so designed that a disabled employee would go straight from the Short Term Disability portion of the plan to Long Term Disability claim with no gap in between.
Short Term Disability Insurance
Short term disability insurance typically provides benefits for up to 6 months.
The elimination period for Short Term Disability Insurance is usually less than 2 weeks and often as short as 1 day.