Disability insurance is the type of coverage that allows payouts to those who have been injured or are suffering from a chronic illness which prevents them from working. If one works for a company that provides disability benefits, your coverage premiums can be included with what you pay on your regular medical benefits. If an unexpected health crisis occurs, which requires an extended leave of absence from your place of employment, you can apply for disability through your employer. Your disability claim is usually approved after the determination that sufficient proof of your disability and work restriction has been provided. This type of coverage is designed to help with compensation for some of the lost income when injured or ill and unable to work.
Anyone who gets a regular paycheck that provides for one’s family is the perfect candidate for this type of insurance. Many employees are under the illusion that normal worker’s compensation will fully cover a person in the case of any injury or illness. It is very important to keep in mind that worker’s compensation benefits only are available if a person is injured at the workplace. The scary truth of the matter is that an employee can sometimes fall ill or be injured outside of the workplace, causing the same disability and the same, devastating loss of income as a result. This is where disability insurance often proves to be so helpful.
When a covered individual is injured or becomes sick and unable to work, he or she normally files a claim with the insurance company that provides this specific kind of coverage, similar as one would do with any other insurance claim. And, normally, the insurance provider then goes over the claim to determine the covered person’s appropriate compensation. Once approved, the claimant is then paid.
These policies come in a myriad of varieties, with differing levels of coverage. The most common is meant to help in the case of a disability and provides monetary payouts to cover a portion of lost income the employee would have earned if healthy and working as before. Other kinds of coverage include one that has more extensive wage loss compensation and also helps with other costs that may be needed during the duration of the disability.
This kind of coverage normally covers up to 60% of your lost income and it can assist in avoiding financial ruin. As part and parcel to a package of benefits, employers often give an employee the choice of both short and long-term disability policy coverage options.
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