Disability Insurance rates for Individuals:

Long Term, Short Term Disability Income Insurance

Philip works at a warehouse in Florida. He is an honest, hard-working father and husband of six—the bread winner. At his particular warehouse he prepares seasonal foods for the holidays. Today was messy pumpkin hummus day.

Philip thought all his equipment was in perfect working order. But today, today was different. The machine that whipped the hummus into package, ready, smoothness had been malfunctioning all week. During Philip’s shift this particular finicky machine decided to have some serious technical difficulties.

While attempting to fix it Philip would lose two of his most dominant fingers on his right hand. This will put Philip out of work for months and Philip’s family will lose an entire income stream—the main income stream at that. Does Philip get worker’s compensation and Long Term Disability insurance coverage or will Philip be ill prepared for the unexpected?

The Difference between Short Term Disability and Long Term Disability

What’s the difference between Long and Short Term Disability anyway, and how is it even going to benefit you or Philip? Here’s a quick lesson in Disability Insurance coverage types. Short Term Disability or STD is exactly what it sounds like, a short term income replacement which replaces a portion of your income during the initial weeks of a disabling illness or accident.  These sorts of  DI policies cover six months to a year of income loss, according to Nolo Legal Encyclopedia (Nolo).

Disability Income Insurance will replace a portion of your Pay check

STD also acts as a place holder during the waiting time for Long Term Disability insurance or LTD plans to become active. Philip will definitely need all the recovery time he can get. LTD will pay a percentage of Philip’s salary while he’s injured. He will be reimbursed up to 66% of his weekly income depending on the type of policy. LTD will also protect Philip from loss of income in the event that he cannot return to work for the extended period of time he will be in recovery. Policy can be purchase to last for a specific period or until age 67. Disability insurance rates for individuals including from 6 months of benefits 2 years or longer.

Other Benefits of Disability Income Insurance

Disability Insurance coverage can even cover mental illnesses as well. Because mental illnesses are self-reported symptoms and cannot be physically diagnosed by a doctor and verified with objective tests, insurance companies tend to limit payment terms up to two years in length. But according to Nolo, some mental illnesses are exempt from term restrictions i.e. schizophrenia, Alzheimer’s, Dementia and sometimes Bipolar Disorder; so one can collect LTD indefinitely.

Because anything can happen you want to be prepared for the absolute worst. No one is exempt from catastrophe and when it hits no one wants to scramble for cash. It’s like having a piggy bank on ice. When the bough breaks and the cradle falls it’s your safety net—the quintessential rainy day fund, wearing a cape and coming to your rescue. Sometimes we all need a super hero and sometimes that super hero is green with the face of a few dead presidents on it.

How Can You Buy Disability Income Insurance

Make Disability Insurance Coverage a part of your planning and financial strategy. You can buy this important coverage as group coverage through your employer or as Individual Disability Coverage from a Broker. Disability Insurance rates for individuals includes partial and permanent disability benefits.

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Cierra Robinson is a freelance writer and artist. For content writing help contact her at r.cierra651@gmail.com.