Disability Insurance

Disability Insurance for All Types of Workers
Disability benefits help workers who become injured on the job and cannot earn income as they recover. A disability is also caused by an illness that affects the worker’s cognitive and physical skills. The benefits are short or long term based on the extent of the injury, the wages lost and the required amount of monthly income. The process of getting insured for a disability starts with knowing the qualifications.

Common Users

Most disability plans are provided by employers to their employees in benefits packages. Workers’ compensation is a type of plan that covers lost income, medical expenses and life expenses for the dependents of deceased workers.

Self-employed individuals take out individual disability plans. Policyholders are independent contractors or fulltime employees whose companies do not offer benefits.

High-income workers protect their assets with high-limit disability insurance. They use this policy to guarantee that they are insured in spite of their high incomes. Other policyholders are those with unusual or high-risk jobs, such as miners and some contractors, who also need the guarantee that they will get insured.

Short-term insurance covers the weekly or monthly expenses of disabled workers with temporary injuries or illnesses. Long-term insurance has a starting 90-day elimination period with a benefit period from 2 years to a lifetime.

Business overhead expense (BOE) insurance is designed for business owners who become disabled and cannot afford rent, utilities, monthly business expenses, etc.

Social Security disability insurance (SSD) is the federal program that is funded by taxes and controlled by the Social Security Administration.

Costs and Eligibility

The costs of premiums depend on the length and complexity of the disability benefits. The costs are higher for policies that cover a larger variety of disabilities. Online insurance calculators help people to find rates that relate to their individual situations.

Payouts are given to those who prove the inability to work due to injury or illness. The situations covered include depression, pregnancy, mental illness and accidental deaths. The requirements vary with each insurance company, but most policyholders are required to undergo medical reviews to prove the severity of their disability. Their payout limits are determined by the number of years worked, their last known income and their expected income in the future.
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