|
Disability insurance will help to replace your income if you become sick, injured and are unable to work.
There are two basic types of disability coverage:
- short term, which usually pays a benefit for six months to two years,
( short-term disability insurance is seldom available on an individual basis).
- long term, which pays for at least a year, but often lasts until age 65 or for life.
Benefits vary however, generally long-term disability policies obtained through work pay 60 to 70 percent of your income if you are disabled and can't work. Individual policies generally pay a specified amount, and short-term disability policies typically pay a percentage of income with a much lower maximum benefit than long-term policies.
Be sure you know the policy's definition of disability! Some policies indicate you will be considered disabled if you cannot work in your own occupation. Others will pay only if you cannot work in any occupation. And a few will pay partial benefits if you have a reduction of income. There are many variations in the definitions of disability, so read the policy carefully and ask questions for clarification.
| 
