Disability Insurance Plans- Know About Them


Social security disability and disability insurance are the two main forms of financial assistance provided to a person in case of a disability.

Disability insurance is provided by insurance companies to assist an individual in case the individual suffers from a disability. For an individual to avail disability benefits under an insurance plan, he/she should have entered into the insurance plan, prior to getting disabled.

There are times when you are unable to earn due to illnesses and injuries. If the extent of your disability is advanced, it may have some very serious economic effects on you and your family. It is here that disability insurance plans come to your aid.

There are basically two types of disability insurance plans- short term and long-term disability plans.

A short-term plan provides you a certain percentage of your salary in case you become disabled for a short duration. The short duration is usually defined as a period of 48 to 52 weeks. The duration may however differ from one insurance provider to another.

However, short term plans do not give monetary assistance for injuries incurred during the course of employment. It provides benefits only if the person has incurred disability which is not work related. A particular individual has to enroll in the insurance program first to be able to avail this benefit.

On the other hand, long term plans are for those people who are unable to make an income for a long period of time due to prolonged illness or injury. People whose condition is completely disabling qualify for the benefits of the long-term disability insurance plans.

As of now, there are only five states which provide disability insurance benefit on a compulsory basis. The relevant laws clearly state that benefits be given to only those whose injuries have not been caused during work. A person whose inability is work-related can not qualify for it.

However, there is a slight deviation from the established norms. If your injury is caused within two weeks from your last working day, you may qualify for the benefits. And, if the injury is caused after two weeks, there is a definite scheme known as injury during unemployment, to back that up.

In this way, there are many types of disability insurance schemes. The target of all of them is the same, which is to provide monetary assistance in the times of need. Only the criteria are different in each of them