Types of Disability Insurance
If you are out of work because of a disability, what can you do to replace lost income? Listed below are different forms of disability insurance that may be available to you depending on your employment situation.
Short-Term Disability Insurance
Short-term disability insurance is usually paid by an employer, but it can also be an employee-paid benefit. This type of disability insurance pays a percentage of your salary for a specific time period if you are temporarily unable to perform your normal job functions because of illness or injury. Coverage can start from one to 14 days after the onset of your condition. A short-term disability insurance policy may have different terms for sickness than it does for injury that may require you to use up sick days first before the policy takes over. Short-term disability insurance usually expires after three to six months, but some policies cap at two years.
Long-Term Disability Insurance
Long-term disability insurance takes over after your short-term disability policy ends. This insurance is also usually provided by an employer, though a person can purchase an individual policy. Depending on the policy, you can receive a percentage of your salary for a specific time period, or until retirement.
This insurance is paid by employers and provides benefits to workers for accidental job-related injuries or illnesses only. It covers short-term, long-term and total disabilities. This is a government-required insurance system. Workers’ Compensation provides a range of benefits including medical expenses, salary during recovery, and compensation for permanent injury or death. An employee is eligible for Workers’ Compensation from the first day on the job. By law, workers cannot sue their employer should they suffer a work-related illness or injury.
Individual Disability Insurance Policies
An individual disability insurance policy is one that you purchase. Should you lose your job, or change jobs, coverage is available to you if you need it. Be sure you know the details of your policy, such as how much of your salary it will pay or if there are restrictions on certain conditions.
Social Security Disability Insurance (SSDI)
The federal government provides a safety net for people between the ages of 18 and 65 who are out of work for 12 months or longer because of a severe medical condition that has made it impossible for them to continue to earn income.
If you have worked long enough and have paid into the Social Security system through FICA taxes, you could qualify for Social Security Disability Insurance (SSDI) benefits administered by the Social Security Administration (SSA). Your cash benefit is calculated the same way as your Social Security retirement benefit and may be reduced if you are getting Workers ’ Compensation benefits or disability benefits from other federal, state or local government agencies that provide civil service disability benefits, or disability retirement benefits. SSDI cash benefits are not reduced if you are receiving benefits from a private disability insurance policy or private pension.
Contact Freedom Disability for SSDI Application Help
There are some very strict and specific requirements you must meet for SSA to approve you for SSDI cash benefits. A Freedom Disability Advocate can determine if you qualify and help guide you through the application process.Contact us online for a free evaluation, or call us directly at (866) 761-5942.