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Disability plans replace
a percentage of your paycheck in case you can't work due to an injury or
sickness. This type of plan is surprisingly inexpensive for most
Businesses who cover their Employees. It is more expensive for
Individuals. Employers
often purchase Long-Term Disability for their Employees, because it is
usually inexpensive, and because it lessens the burden on the Employer
who may be expected to "help" an Employee during a crisis,
such as a Disability.
Long-Term Disability
is the most popular plan, whether purchased by Individuals, or by
Employers to cover their Employees. Long-Term Disability usually
covers the Insured until age 65, in case of Disability. It often
comes with an elimination period (or waiting period) of 90 to 180 days
of total disability before the benefits begin.
Short-Term Disability
is often purchased by Employees, as a supplement to their Employer's
Long-Term Disability plan. It covers the "gap" in the
elimination period. Popular benefit plans have an elimination
period (waiting period) of 0 to 7 days, before benefit checks begin.
It usually lasts 13 to 26 weeks, which coordinates perfectly with the
Long-Term Disability plan.
For Professionals and
Business Owners, special Disability plans are available, such as "Key
Person" Disability plans (designed to provide funds to hire another
Employee to replace the services of a Key Employee or Business Owner who
becomes disabled),
and "Business Overhead Expense (BOE)" policies,
(designed to pay the overhead expenses of a business, if the
Insured is totally disabled). Other
contractual features of Disability policies are very important, such as
the definition of disability, a cost-of-living adjustment, partial &
residual disability benefits, any pre-existing conditions waiting
period, etc. These features, and others, will be fully disclosed
to you when you request a quote, and receive a brochure & premium
quote. |
