Disability Insurance

The main objective of disability insurance is to safeguard individuals from the financial consequences of being unable to work. If someone becomes disabled and cannot perform their regular job duties, disability insurance helps provide financial support during their period of disability. This support can help cover essential living expenses, medical bills, and other financial commitments.

There are two primary types of disability insurance:

1. Short-Term Disability Insurance: This type of coverage typically provides benefits for a limited duration, often ranging from a few weeks to a few months. Short-term disability insurance is beneficial for covering temporary disabilities caused by injuries or illnesses that require a shorter recovery time.

2. Long-Term Disability Insurance: Long-term disability insurance offers coverage for an extended period, usually several years, or until the insured person reaches retirement age. It kicks in after the short-term disability coverage ends or after a waiting period, commonly known as the “elimination period.”

Disabilities covered by insurance policies can vary, but they generally include both physical and mental health conditions that prevent an individual from performing the duties of their occupation. Some policies may also include coverage for partial disabilities, where the individual can work in a reduced capacity but still experiences a loss of income.