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State Disability Insurance


State disability insurance program is generally a rare insurance product. It is mostly found in very rich economies where state employees are covered under the state scheme. In order to receive benefits, they pay a percentage of their income. There are various sections of the plan, which helps you cover your income when you are on an unpaid leave, caring for someone, or have been away from work for some medical reasons. However, this must not be confused with short-term disability insurance which is offered for covering a specific financial liability in the event of your disability. This can be purchased by an individual from any insurance firm.

The state insurance program is a state run scheme, and covers your income in various ways. People of some sectors which are temporary in nature do not have these benefits. However, the state is responsible to all its citizens and the government provides for elective coverage. This means that people who are self-employed can voluntarily seek insurance coverage under the state disability scheme.

This insurance plan is only responsible for replacing your wage income and does not take any liability of any other expense an insurer might incur. These include health expenses and debt. The base period of calculation of the premium and the claim period vary form country-to-country. Some calculate it according to the straight calendar. Some others keep specific period of application of the scheme and calculate according to fiscal year of April-to-March.

The cover has an eliminating period which depends upon the information and recommendation of the concerned physician. He provides information, as to how far the disability is going to last. The benefit of this state run scheme is that it is from the state who is an employer and also a guarantor of the security of your income and employment. Whereas the private firms are subject to market risks.