Disability
Insurance
Disability insurance pays part of your income if you can’t work because of an illness or injury.
Why you need disability insurance
The chance of missing months or years of work because of an injury or illness may seem remote, especially if you’re young and healthy and you work at a desk. But more than one in four 20-year-olds will experience a disability for 90 days or more before they reach 67, according to the Social Security Administration.
Types of disability insurance
There are two main types of disability insurance — short-term and long-term coverage. Both replace a portion of your monthly base salary up to a cap, such as $10,000, during disability. Some long-term policies pay for additional services, such as training to return to the workforce.
Short-term disability insurance:
Disability policies vary in how they define “disabled.” Some policies pay out only if you can’t work any job for which you’re qualified. Others pay out if you can’t perform a job in your occupation. Some policies cover partial disability, which means they pay a portion of the benefit if you can work part time. Others pay only if you can’t work at all.
To learn more about Disability insurance, contact Theodore & Associates today to talk with one of our agents. We’re right here in South Carolina, ready to guide you toward a more secure future.
Why you need disability insurance
The chance of missing months or years of work because of an injury or illness may seem remote, especially if you’re young and healthy and you work at a desk. But more than one in four 20-year-olds will experience a disability for 90 days or more before they reach 67, according to the Social Security Administration.
Types of disability insurance
There are two main types of disability insurance — short-term and long-term coverage. Both replace a portion of your monthly base salary up to a cap, such as $10,000, during disability. Some long-term policies pay for additional services, such as training to return to the workforce.
Short-term disability insurance:
- Typically replaces 60% to 70% of base salary
- Pays out for a few months to one year, depending on the policy
- May have a short waiting period, such as two weeks, after you become disabled and before benefits are paid
- Typically replaces 40% to 60% of base salary
- Benefits end when the disability ends. If the disability continues, benefits end after a certain number of years or at retirement age.
- A common waiting period is 90 days after disability before benefits are paid
Disability policies vary in how they define “disabled.” Some policies pay out only if you can’t work any job for which you’re qualified. Others pay out if you can’t perform a job in your occupation. Some policies cover partial disability, which means they pay a portion of the benefit if you can work part time. Others pay only if you can’t work at all.
To learn more about Disability insurance, contact Theodore & Associates today to talk with one of our agents. We’re right here in South Carolina, ready to guide you toward a more secure future.
