Short Term Vs Long Term Disability Insurance
Disability insurance is insurance protection that will protect your expenses and
future earnings when you become injured or disabled, making you unable to attend or satisfy your tasks at work. A disability claim is the amount of which the insured is entitled based on the amount of insurance he purchased and the type of disability he or she has incurred.
Types of Disability Insurance
There are two types of disability insurance today. Although they are named differently,
short term disability insurance and
long term disability insurance work hand in hand to provide insurance protection to its beneficiary.
By definition, short term disability policies are those that have a waiting period of 0 to 14 days and a maximum benefit period of no longer than two years. It covers a percentage of your lost salary should you become injured or ill and are not able to work for a few days. On the other hand, long term disability policies are those that have a waiting period of several weeks to several months, providing you benefit from as short as 5 years to a lifetime. It has been proven to be the most important insurance for any employee.
What Differentiates the Two?
According to the American Council of Life Insurers, one third of all Americans between 35 and 65 will become disabled for more than three months. In addition, 1 out of 7 workers will become disabled for more than five years. These disabilities are not caused merely by accidents, like what most of us believe. Rather, they are caused by illnesses such as cancer and heart and other internal diseases.
Because of this, disability insurance among employees is even more valuable. But as an employee, do you know which type of disability insurance should you purchase for yourself? Or if you are an employer, do you know which type of insurance better suits the need of your workers? To help you decide whether to purchase short term disability insurance or long term disability insurance for your worker, here is a brief comparative analysis on them:
1.When can you avail this disability insurance?
Disability insurance Short term disability claims are used when an employees sick leaves have been exhausted. Long term disability insurance is availed when short term disability insurance has run out.
2.How much insurance claim can you expect?
Often, short term disability claims pay off 100% of wages in the first payout. However, if the policy owner is still unable to work, payments will eventually drop down to 60% of the wage. On the other hand, long term disability insurance covers between 50 to 70% of the policy owners salary. When you have the long term disability insurance, youd have the option to purchase another insurance that would raise the coverage to up to 80%.
3.How long does the benefit of each type last?
Long term insurance typically lasts for five years to a lifetime while the duration of the benefits of short term disability insurance varies although the most typical lasts six months.
So Which Type of Disability Insurance is Better for You?
Providers of
online disability insurance quotes highly recommend that you purchase both the short term and the long term disability insurance. However, if you cannot afford to pay for both, it makes a lot more sense to purchase the long term disability insurance.
Call eDisabilityQuotes.Com for the most updated
disability insurance quotes today at 1-800-971-3214 or email us at info@eDisabilityQuotes.com to get the most updated online disability insurance quotes and infos!
by: Ted Stearns
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