It’s smart to have an insurance policy that covers your income if you should suddenly become disabled. There are two primary types of disability insurance, known as short-term and long-term policies. While there are some similarities between the two, there are a few other considerations that you need to think about when you’re reviewing these policies.
One of the biggest differences between these types of policies is that short-term policies will typically have a shorter waiting period than long-term policies before they pay. This comes at a cost, however, since short-term policies will only pay benefits for a limited period of time (often as short as six months). Long-term policies may have a fairly long waiting period, but they also pay for a much longer time. In many cases, they pay until you qualify for Social Security Disability.
One thing to remember about these disability plans is that they don’t only apply to work-related injuries. You can utilize the benefits that come with both short-term and long-term policies as long as you’re suffering from a covered disability, regardless of where the incident that caused the disability occurred. In some cases, you may be required to show that you can’t work any position. In other cases, you may only be required to show that you can no longer do your own job.
Trying to navigate these policies can become problematic when you’re already suffering from health issues. It’s usually a good idea to work with someone when you’re making a claim — particularly if you will also be filing for either workers’ compensation or Social Security. An experienced advocate can help.