Understand Disability Insurance Before Buying Health Coverage

Disability insurance (DI), also called disability income insurance, is quite simple to explain. It is an important component in your health coverage benefits program. There are two basic types of disability insurance.

  • Short-term disability coverage, and
  • Long-term disability income insurance.

Disability coverage should not be confused with workers’ compensation insurance, which many states require for employers, as this coverage also reimburses medical expenses.

What DI Does

Disability insurance provides monthly income as a percentage of regular compensation if you suffer injury, illness or other impairment that prevents you from working at your job. Historical statistics indicate that around one of every four working people will endure a disability before they retire.

Short-Term Disability Protection

As its name implies, this health coverage provides income for the short-term after you exhaust your sick leave, if any. Unlike workers’ comp insurance, you need not suffer injury while on the job. Payments typically start within 14 days of your injury or illness. This coverage usually lasts between 8 to 26 weeks.

Long-Term Disability Coverage

This DI usually begins after 90 to 180 days (or after your short-term disability coverage ends) to provide income for longer term injuries. Common payment terms are up to 10 years or to age 65.

Typical payment amounts for both types range from 50 to 70 percent of regular monthly compensation. To get more information about this health coverage, if you work in Colorado, contact Pilkington Financial Services, helping clients protect themselves since 1974. Their professionals have the expertise to explain every nuance of disability insurance, while giving you affordable quotes for protection.