Many people relate disability with an injury, but that is not always the case. According to Principal, 96.5% of missed work is because of illness, not injury.
You need a reliable back-up plan and you have options.
Income protection is your fallback. In the event you aren’t able to work, disability insurance provides you a monthly payment to put toward bills and other financial obligations.
You’ve worked hard for a successful future and disability insurance can keep you and your family on that path even in the event of a disaster.
3 key differences between Short-term verse Long-Term Disability Insurance
Both types of disability insurance replace a portion of your monthly base salary up to a cap during disability. The biggest difference is the length of time you are covered and the amount of coverage benefit.
Short-term disability insurance has a shorter wait time before it kicks in. On average about 14 days. It takes around 90 days before the policyholder or employee can start receiving long-term disability coverage.
There’s a significant difference between costs for short – and long-term disability coverage. It comes down to your health status, type of occupation, age and other factors. Because short-term insurance plans have shorter payout periods, this type of coverage can be more affordable.