Disability Insurance for Unexpected Circumstances
Protect your way of life in the event you can no longer work
Disability insurance is used to pay part of your income for an extended period of time in the event of an accident or illness. This type of insurance is not just for those who work in high-risk fields, such as construction, but for anyone who works for a living.
Becoming unable to work may seem like something that will never happen to you, but it happens more often than you would expect. In fact, according to the Social Security Administration, one in four 20-year-olds will experience a disability for at least 90 days before they are 67 years old.
There are two types of disability insurance – short-term and long-term. Both will replace a portion of your income for a length of time.
Short-Term Disability Insurance
- Most often replaces 60%-70% of base salary
- Payout is usually a couple of months to one year depending on the policy
- Possibility of a waiting period (often two weeks) between when you become disabled and when benefits are paid
Long-Term Disability Insurance
- Often replaces 40%-60% of base salary
- Benefits are stopped when disability ends. If disability continues, benefits stop after a certain number of years or at retirement age
- 90-day waiting period between when you become disabled and when benefits are paid