Disability income insurance is one of the least understood types of insurance, but also one of the most important. Many people mistakenly believe that workers who become disabled will receive disability income either through Social Security, Worker's Compensation or both. But Social Security disability benefits are often quite restrictive and employees don't qualify for Worker's
Compensation unless the disabling illness or injury happened on the job.
Employer-sponsored disability income insurance is much less restrictive and falls into two main categories. Short-term disability income insurance plans usually offer benefits that are paid for a maximum of 26 weeks, while long-term disability benefits generally continue for the length of the disability or until retirement age.
Cost can be affected by adjusting the maximum monthly benefit, benefit periods and waiting periods before benefits begin. This is another area where it's sometimes possible to allow employees to purchase additional coverage either by purchasing increased benefits under the group program or through a voluntary benefit program.
Visit our disability insurance section to learn more.