What is Disability Insurance?
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When most people enter the workforce, they do not think about the possibility of being too injured or sick to work anymore. However, insurance is all about being ready for unpredictable circumstances. Disability insurance is there to help you if you are too ill or injured to work. There are multiple types of disability insurance. Read on to learn more about the basics of disability insurance below.
Overview of Disability Insurance
Disability insurance protects you in the event that you are too sick or injured to work. Different plans pay you to different extents. Many plans will replace only a portion of your income. There are two main types: long-term insurance and short-term insurance. Typically, long-term insurance plans can pay between 40% and 70% of your income. Long-term plans may pay you for 5, 10, 20 years, or even up until retirement age. Short term plans may only pay you for 3-6 months, but they will pay up to 70% of your income.
Caveat of Disability Insurance
One important caveat of disability insurance is the elimination period that affects long-term policies. The long-term policies often have a 90-day period after you purchase the plan in which you will not receive benefits. You have to make arrangements to cover your expenses during this time.
Applying for insurance
Many people get disability insurance through their employer of some sort. However, you will most likely have to add on additional coverage. Many employers only have short-term policies. You will typically need a long-term policy as well to actually be covered. In order to qualify for long-term plans, you need to meet certain qualifications. Typically, you have to have certain disabilities or limitations. These include:
- Physical Injury/Impairment
- Cancer
- Bi-polar Disorder
- Crohn’s Disease
- Chronic Fatigue
- Syndrome
- Degenerative Disc Disease
- Fibromyalgia
- HIV/AIDS
- Lupus
- Multiple Sclerosis
Disability via Social Security
Lastly, you may be eligible for supplemental income through Social Security. Social Security works through the state and federal government. Unlike insurance, Social Security benefits offer you a supplemental income that you apply for after you are disabled and meet their criteria. To qualify for Social Security disability benefits, you must first have worked in jobs covered by Social Security and currently have been unable to work for a year or more due to your disability. You must also have one of the impairment types below:
- Musculoskeletal impairments
- Special Senses and Speech
- Respiratory Disorders
- Cardiovascular System
- Digestive System
- Genitourinary disorders
- Hematological disorders
- Skin disorders
- Endocrine disorders
- Congenital Disorders
- Neurological disorders
- Mental disorders
- Cancer
- Immune system disorders
Making sure you are covered in the event that you are too ill or injured to work can be intimidating. At Proinsurance Hawaii, we can help you get your coverage started. If you’re interested in individual or group insurance, we can also find you a plan that suits your needs! Give us a call today!
