Your ability to work is extremely important, so it makes sense to protect it with a dedicated insurance policy. Disability insurance allows you to do just that. This coverage provides income in case you should be unable to work due to an accident or illness.
There are two basic types of Disability Insurance: Long-term and short-term. This brief guide will show you what are the main differences between them so you can make an informed decision.
Long-Term Disability Insurance
This coverage provides income in case you suffer extended illness or a disabling accident, allowing you can maintain your standard of living.
Long-term disability insurance has a waiting period that can go from several weeks to several months with a maximum benefit period ranging from a few years to the rest of your life.
An important concept to understand is that of waiting period, or elimination period. This is the amount of time that must elapse after the insured becomes disabled and before the benefits are paid. Depending on your policy, some months may have to pass between the disabling incident and the moment when you can start receiving long-term disability compensation.
Short-Term Disability Insurance
This type of disability insurance will replace a portion of your income for the initial weeks of your disability, should you become unable to work due to illness or an accident.
Short-term disability insurance has a waiting period of 0 to 14 days with a maximum benefit period of no longer than two years. This means that you have to wait up to two weeks after you become disabled to receive the benefits, although this may change depending on your policy.
It’s worth noting that when the benefits of short-term insurance expire, some employers offer access to long-term disability insurance
Learn More About Insurance
These are some previous posts you can check out to learn more about the world of insurance.
- Use these four tips to save on Car Insurance
- What are the most common life insurance riders?
- Renters Insurance: Everything you need to know
- Avoid these common Boat Insurance myths.
- An essential collision insurance glossary.
- 10 Essential Home Insurance terms
Contact the Experts at Delgado’s Insurance
Looking for Disability Insurance in Bloomington, Riverside, or anywhere in California? at Delgado’s Insurance, we can help you find a policy customized to your individual unique needs.
We have locations in Riverside, California, and Bloomington, California. Contact us today by telephone (951-361-0084, 909-421-9003), email, or through our social media accounts to get a free quote and learn more about our Life Insurance options.