You never expect to be in a position where you can’t work, but something as simple as a back injury or maternity leave could mean time off of work without pay. Fortunately, depending on your plan, you could receive benefits up to 50-70% of your salary through Disability Insurance.
|Short Term||Long Term||Individual|
|Length of possible coverage payments||9–52 weeks||Benefits paid until retirement age||Benefits paid until retirement age|
|Amount that your benefit can pay||Up to 60% of your monthly income||Up to 60% of your monthly income||A higher percentage of your pre-disability earnings|
|Portability||Sometimes portable, depending on plan||Portable in most cases||Fully portable|
|Most commonly used by people who experience||
You are considered to be disabled on the date that you meet the definition of disability as outlined in your policy. Your medical records and information from your physician will help determine that date. Common illnesses and conditions that may lead to disability include:
Excluded disabilities can vary by policy, but typically include:
Your "gross benefit amount" is the amount you signed up for at enrollment for your policy. It may be subject to offsets from other sources of income you also receive. Depending on how the coverage is paid for, it may also be subject to state and federal taxes. Benefit payments will be prorated to a daily benefit based on the benefit amount you chose.
Payments begin once you meet the eligibility requires of the coverage, the definition of disability, and the elimination period (also known as the "waiting period").
Depending on the definition of disability as defined in the policy, you may be able to receive benefits and work part-time.
Most policies will allow you to work part-time while on claim; however, typically, you will need to have a certain percentage of your earnings lost to disability for a claim to remain active.