Disability Insurance – How it Works
Disability insurance is intended to pay for some, or all of an employee’s salary if the employee was to become disabled, making it impossible for them to do their work. Disability can be as a result of an injury or accident that occurred while carrying out work-related functions. It could also be as a result of a debilitating illness like a heart attack or cancer. The insurance policy will reimburse the worker money that they may lose while they are recovering from their injuries or illness.
Who is it for?
The insurance policy is intended for any person who earns a living executing certain tasks, regardless of their area of profession. Unlike social security, this policy does not have a cap on when a worker can get the policy. It also does not provide a cap on the maximum monthly amount pegged on a worker’s salary that can be provided in case of an injury.
How It Works
It covers close to 70 percent of the employee’s wage regardless of age in case a disability does take place. Some employees are covered by policies provided by their employers. But others do not have any coverage or have very limited coverage.
If you are an employee without coverage from the employer, you can opt to purchase a private coverage. This will help protect your earning potential. It also ensures that your family will be taken care of in case you suddenly become ill or sustain an injury.
Different Types of Coverage in Existence
Private disability covers can either be in the form of a short-term or long-term policy package. Short-term packages will cover illnesses for a period of up to 6 months while a long-term cover will provide coverage for your entire lifetime.
A disability policy is beneficial in that it ensures that an employee will continue receiving a certain percentage of their income if they are unable to work because of a disabling accident. It provides an important protection for you and your family. Your family will continue to be provided for even when you are no longer able to go to work to fend for them.”