A guide to short term disability insurance

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© fairfaxcounty (Flickr)
Why you need it
Short term disability insurance is a life saver because it enables you to get an income whilst you are sick and unable to work. Short term disability cover is different from workers compensation insurance because the latter only covers you if you suffer a work related injury. Most insurance companies require the claimant to go for disability benefit check on a monthly basis until they go back to work.

Short term disability insurance rates

The benefits that you get varies from one policy to another. For example, the percentage benefit of your salary can be anywhere from 40% to 70% depending with your occupation and things like tax issues. Different employers and disability plans provide different covers that is why it is important to check and confirm everything before you can make a claim. The amount of premium that you pay also determines the benefit payout.

How to buy short term insurance cover
Disability cover is inexpensive and it can be a good return on investment in the event that you become disabled. Buying disability insurance is easy – you can purchase it through your employer and there won’t be any reason for you to go for physical evaluation or medical testing before being accepted. It is one of the best insurance plans that can protect you against loss of income during that time you are disabled.

How long does it take before you can start receiving payments?

You can start receiving benefits within one day to two weeks from the day you become disabled. This usually depends with the nature of disablement, an injury or an illness. If it’s an injury then cover may start immediately. If the disability is illness related then the claim process may take a few days. Having this cover is important because it can replace your income during that period you are unable to work.