| Imagine being sick and out of work for a long period of | | | | There are basically two different types of disability |
| time - not just a few days - but for several weeks or | | | | insurance - short term (STD) and long term (LTD) |
| even months. And imagine not getting paid for that | | | | insurance. Short term disability insurance generally |
| time spent away from work and how devastating that | | | | covers a period of absence from work of up to two |
| would be for you and your family. | | | | years; long term disability generally covers a period |
| Although most of us make sure to insure our car, | | | | from two years until retirement age. The average |
| house and lives - many of us don't understand the | | | | length of time missed from work due to disability is |
| importance of insuring against lack of income from our | | | | around two and a half years. |
| jobs. More than 80% of American workers don't have | | | | Individual disability insurance will generally cover |
| any type of disability insurance. And almost 50% of | | | | between around 50 to 70% of your normal income if |
| home foreclosures in the United States are due to | | | | you are out of work. Insurers don't like to cover the |
| homeowners being out of work from long term | | | | entire amount of a person's income for fear they will |
| medical issues. | | | | be inclined not to go back to work! |
| Many employees assume that if they are sick, normal | | | | You also generally have the option of paying more in |
| sick time pay will cover them and for a short term | | | | premiums to have a higher percentage of your salary |
| sickness, this is generally true. The problem potentially | | | | covered in the event of you being out of work. Most |
| occurs when a worker is out sick for several weeks | | | | disability policies cover the insured until the age of 65, |
| or months and has exhausted their sick time. | | | | after which time normal social security disability |
| If you are out of work for a long time and have no | | | | benefits will cover you. |
| more sick time, social security won't necessarily cover | | | | The amount of disability premiums vary and are |
| the lost wages. Not everybody is approved for social | | | | determined according to several factors including a |
| security disability benefits - and it can also take several | | | | person's age and sex. The amounts are also |
| months to determine eligibility. Even if a person qualifies, | | | | determined by what kind of work a person does and |
| the social security benefit may not be enough to make | | | | how risky it is - premiums for a construction worker |
| up for the loss in salary. And most people don't have | | | | are likely to be higher than for an office worker. |
| nearly enough in savings to cover a long absence | | | | If you are in the market for disability insurance, try to |
| from work. | | | | take out what is known as a "non-cancelable" policy |
| That's basically where disability insurance comes in. As | | | | which locks in your benefits and rates. The insurance |
| the name suggests, this type of insurance is designed | | | | company can't make changes to the policy unless |
| to replace a percentage of your income lost from not | | | | requested by the policy holder. |
| working for an extended period of time due to illness | | | | So the next time the opportunity arises, consider |
| or disability. If your employer offers a benefits package | | | | disability insurance carefully. It may be something none |
| every year, chances are that disability benefits are one | | | | of us like to think about - but it could make a big |
| of the options. | | | | difference if the unthinkable happens. |