Disability Insurance

Disability Illness Insurance Explained


Disability Insurance is a kind of policy coverage that is designed to protect one’s income should a policyholder become critically ill or injured and, as a result, be rendered unable to work for a certain time. It has coverage for injury to any part of your physical body, including such critical components as eyesight, hearing, limbs and hands, even for mental incapacitation.

Who needs it

Just about anyone can benefit from this kind of policy coverage. This is due to the fact that anyone can become sick or hurt any time and then be saddled with the inability to perform their work duties. This kind of coverage can be provided to those who own their businesses, for those who are self-employed, employees and even those who presently not working. It is comprehensive and a potential boon to all.

How it operates

Payout levels will vary depending on the choices made for the levels of coverage. Each policy has an annual renewal and, should one become sick or injured and, as a result, be no longer able to perform his or her employment duties, one can then file a claim for financial compensation from the insurance provider. The extended payouts go on until the person is once again able to resume work duties as before.

Kinds of coverage

There are generally two types of disability insurance coverage. There is “Short-Term Disability” (STD) and “Long-Term Disability” (LTD). STD policies will usually have 14-day waiting period with a maximum period of benefits being provided for no more than two years. LTD policies will usually have a waiting period of three weeks up to several months with a maximum benefit period ranging from three or so years up to the balance of one’s remaining life.