How Disability Income Insurance Works
You will receive disability income benefits when you meet the definition of total disability or partial disability defined by your insurance company. In most cases, partial disability is when you are unable to perform essential tasks of employment or have to reduce your hours (and compensation) significantly because of your disability. Total disability is when you cannot perform any basic duties of you job and at the end of a specified period outlined in your policy.
Many disability policies include a waiting period that range anywhere from 90 to 365 days before you can receive income replacement benefits, depending on the policy. You need to consider the waiting period and also the length of the benefit period — the length of time you will receive benefits — which can range anywhere from one year to five or more years, when shopping for a policy. Many companies offer short term or long term policies and some policies also include other features that provide additional monetary benefits.
Funding dreams even after a health scare
When these newlyweds were purchasing their first house, they discovered that long-term disability insurance coverage would help them protect their future in the event someone was unable to work. When Cindy had a stroke and underwent surgery for an aneurysm, she was out of work for almost eight months. Find out how Cindy’s disability policy allowed her to have an income to buy their dream home.