Assessing Disability Insurance
Sick days are something that most people take at some time or another. Usually it is less than a few days which is no big deal. What happens if you become sick and must be off work for several weeks or even months? This can be devastating if you are not prepared for it, but disability coverage can step in to ensure that you get some portion of your income to keep you from going under financially.
The biggest benefit of your disability coverage is that you will get up to 60% of your income. While it is not the entire amount, it can help you to stay on track somewhat. Your employer most likely offers short and long term disability coverage to fit your needs.
Short-term disability is a limited period of time coverage to allow you to recover from an illness or injury. Coverage normally has a waiting period of one to fourteen days after the event that keeps you out of work. It will give up most or all of your income for up to a specific amount of time.
If you are going to be gone for a longer period of time, long-term disability may be the best choice for you. This is for someone who is going to be gone for several months. It normally pays a percentage of your income. If you are injured at work, Worker’s Compensation may pay coverage.
Disability insurance does not pay medical bills, as it is not health insurance. It does, however, provide you with income to help cover some of the expenses. It works to fill in the gap between your disability and your Social Security benefits to start.