Different Types of Disability Insurances

May 24 ,2012 by admin

Being disabled or perhaps not being able to function well at work entitles an employee to take advantage of his or her disability insurance. This type of insurance will help and assist people to not bear the consequence of being financially unstable because he cannot work for a time or perhaps a lifetime. Knowing some of the different types of disability insurance will inform you that there are ways to safeguard your earnings, so that you and your family will continue having enough cash for your home’s expenditures.

We have been hearing about different types of disability insurance almost everywhere, but not everybody knows the difference between the insurance plans or perhaps not everyone knows what are the different plans available in the market. To give you a better understanding of what a disability insurance is, along with the various types of it, please read this article from top to bottom to get you informed and well educated.

In case an individual is caught in a very unpleasant situation at work, which caused his disability, a different form of insurance will be provided, which is actually called a worker’s compensation insurance. Nonetheless, in the event that a individual is not able to work due to other reasons, certain types of disability insurance is one way to make sure that the individual will still continue receiving a portion of his or her daily pay, even if he or she cannot work.

Where To Get This Kind Of Insurance

It is just fortunate for some to receive this kind of insurance offered by the company he or she is working for, as part of his overall benefit package. But for some who are not given the benefit, they can always seek their preferred insurance company, talk to an agent, and acquire a private insurance from the company.

The different types of disability insurance comes in three main categories; Short term, Long term, and partial.

Let us know them in details…

Short Term Disability Insurance – the coverage of this types of disability insurance is quick and short. The coverage is only to be used for at least 3 months, up to a couple of years, depending on the company providing the insurance. In fact, two years is already a bit long, and normally, companies will only cover up to a maximum of half a year. Insured people who experienced accident will not be required go through a waiting period, but for others, the normal waiting period is at least two weeks, before they can receive a payment equivalent to at least 40% of your daily pay.

Long Term Disability Insurance – this particular disability insurance is ideal for people who have encountered a more severe accident that will need extended care. It usually covers the insured of at least half of what he is paid, to a maximum of 65 years of age. Nonetheless, some individual make use of the LTDI when the short term disability insurance cannot be extended anymore. They use the LTDI for at least a couple of years, or until they are fully recovered already and ready to work.

Partial Disability – in case an individual cannot function well at work due to an illness or an accident, but has the intention and potential to go back in a few weeks or so, this type of disability insurance can be the best option. This is also best for workers who can work on a light duty, or perhaps work on a limited number of hours only. This is one of the best types of disability insurance category because workers can still earn from his daily job, while receiving the other half from the claim.

These are the different types of disability insurance according to coverage that everyone can take advantage of, so long as they are eligible for the plan. Anyone can always have any of the different types of disability insurance according to the way they like it. All that is needed to be done, is to choose a good, trusted, and reputable insurance company, and speak with an experienced agent so that you can be well informed about the different coverage that you can have in your intended policy, understand the underwritings appropriately, and to talk about your allotted budget for the plan as well. You and your agent can go over the list of coverage and see what is really needed and essential, and what can be left out, so you can maximize your plan according to what you can pay for on a monthly or a regular basis. Furthermore, always remember to choose your insurance company wisely, in order to have the best deal and quality of service all the time.