Long-term disability insurance covers longer periods of disability, lasting from a few years to the age of retirement depending on your condition.
Most of us are familiar with the more routine or mundane types of insurance. We’ve got health insurance, home insurance, and car insurance and have been dealing with the process of navigating those purchases for a number of years. There are other types of insurance that many people are less familiar with, like life insurance and disability insurance. Many of these only come up at work since they are part of benefit packages. They are also often overlooked and ignored, especially by younger employees. Disability insurance especially is often ignored or opted-out of, but it is very important. Read on to learn more.
What Is It?
Most of us know what life insurance is – a payout in the event of your death – but what about disability. Essentially it is very similar but it pays out if you are ever disabled enough that you can’t work and it provides protection to make sure you could continue to pay your bills and cover expenses. Also keep in mind that disability insurance replaces part but not all of your paycheck, so it can only be part of the solution. There are different types of policies, and it may be worthwhile to discuss your specific needs with an insurance broker.
What Are The Types?
The common types of disability insurance are short-term, long-term, and social security. Short-term disability insurance is meant to cover a disability that keeps you from working now but will heal over time. In these cases, the disability can be resolved and you will be able to return to work eventually. Generally this covers 6-8 months, and usually does not extend past a year. Long-term disability insurance covers longer periods of disability, lasting from a few years to the age of retirement depending on your condition. Social security disability insurance is part of your social security benefits, but qualifying is very difficult.
How Does It Work?
Your policy will lay out what sorts of disabilities it covers, from long-term illness to partial disability to full disability, and these definitions vary between carriers. If you meet the definition, there will be a waiting period before benefits kick in, but after that a percentage of your normal paycheck amount will come to you for the length of the coverage. This is all determined by your policy and varys a lot between carries and policies.
Do Your Need It?
If you need your paycheck to cover your living expenses, the answer is yes to this question. If you’d fail to make ends meet if your paychecks just stopped, then having disability insurance is a good idea. No one can say for sure what the future will bring, and disability insurance helps you prepare just in case.
Partner with Malden Solutions Today
Malden Solutions has a wealth of expertise in providing employer insurance solutions, HR solutions, and individual insurance solutions to businesses both big and small. Our team of seasoned professionals can help you navigate the rapidly-changing world of insurance with ease. We partner with businesses and individuals throughout the country to provide our dedicated services for employee benefits but also work within our surrounding communities in Maryland, Northern Virginia, and Washington, D.C. Contact us today to learn more about how we can provide effective, dynamic solutions for your business. Stay connected with us on Twitter, Facebook, and Linkedin.