Disability insurance provides you with a supplemental income when you can no longer work due to a disability. Coverage can be obtained either individually or by a group through your employer.
Individual coverage can be purchased through an insurance broker, much like life insurance. The carriers will evaluate your medical history to ensure that you have not been diagnosed with a condition within the past 10 years that can cause you to become disabled in the foreseeable future.
Disability insurance will provide you with a monthly income on the chance that you file for disability. Depending on your specific contract, this can be either a percentage of you pre-disabled income (up to 70%) or a specified dollar amount.
SHORT TERM DISABILITY INSURANCE provides you with a supplemental income when you are on a medical leave of absence or if you have to dramatically reduce your hours at your job due to a medical condition. This insurance plan is for those who will be returning to work in the projectable future. Short term disability can provide you with an income for up to one year.
Unfortunately, some do become permanently disabled and unable to ever return to work. If this happens to you, LONG TERM DISABILITY INSURANCE can help you to remain financially afloat. Coverage can last anywhere from 1 year up until retirement (usually at age 65).