Short & Long-Term Disability Insurance
As its name implies, a disability policy provides a financial safety net when you are unable to work due to injury or illness. The majority of workplace absences are caused by back injuries, heart disease or cancer — which are common among many ages and populations. Because of the likelihood of a long-term work absence, having both a long-term and short-term disability policy is useful.
Disability insurance is designed to replace a portion of your income while you are recovering from illness or injury. The benefits of the policy are paid directly to you, so you can spend the money on whatever you choose. There is a wide range of coverage options available, but many policies cover between 60% to 70% of your income for a period of three months to retirement age. Short-term and long-term disability refers to the amount of time the policy will cover. Short-term disability insurance usually covers a term between three to six months. Long-term disability insurance is typically used in yearly increments.
Both types of disability policies have what’s known as an “elimination period,” or a length of time before benefits pay out. Short-term disability tends to pay out benefits within a week or two of your claim, while long-term disability insurance has a waiting period of about 90 days. For those who choose a long-term policy, it’s important to plan for how you will cover expenses during those initial 90 days. Some companies offer additional coverage that will pay out immediately after an injury or illness stops you from working.
Depending on your financial situation, it may make the most sense to have both a short- and long-term disability policy. One in four Americans don’t have an emergency fund, so the peace of mind that a short-term policy provides is worth it for many people. If your condition ends up extending past the short-term policy’s benefit period, you’ll be able to start receiving your long-term policy’s benefits immediately. For that reason alone, it makes sense to have both policies, so you can avoid the headache of unexpectedly becoming responsible for thousands of dollars’ worth of expenses.
True Texas Benefits can help you decide on the best short- and long-term disability policies for you and your loved ones. Unlike other insurance brokers, our experts are committed to supporting you from the initial decision-making process through application and beyond. With our customer-focused, white-glove service, you can expect:
- Creative benefits planning and design
- A dedicated account manager
- Platinum benefits communication
- A centralized, cloud-based enrollment platform
We want to make it easy for you to create a safety plan that you can feel good about. Contact us today for all of your insurance needs.