Disability Insurance (DI) is an insurance policy that gives monetary benefits to eligible workers who cannot work or earn money due to a physical or mental disability. This could be caused by an illness, injury, surgery, pregnancy, or childbirth. The United States government provides disability insurance through Social Security System. However, one can also buy disability insurance from private insurance companies.
The two types of disability insurance policies you should know are:
- Short-Term Disability (STD) Insurance Policy
- Long-Term Disability (LTD) Insurance Policy
Short-Term Disability (STD) Insurance Policy
A short-term disability insurance policy provides monetary compensation for non-job-related injuries or illnesses that deprive an income earner of working for a short period. Before applying for the benefit, the employee has to have been unable to work for a while due to the condition. The benefit period STD insurance provides can run from a few weeks up to a maximum of two years. While it can cover a percentage of your minimum salary, it excludes bonuses and commissions you were entitled to at your workplace.
To be eligible for short-term disability benefits, you must:
- Have worked with the company for some time, usually between 6 months and 3 years, depending on your state
- Have proof that, due to a medical condition as confirmed by a doctor, you are unable to do your job
- Provide evidence that the medical condition is temporary, such as pregnancy, surgery, or a curable illness
- Have proof that the injury or illness is not job-related
- Provide your medical record for verification
- Be sure that the condition is not preexisting or inflicted while you were committing a crime
If all requirements are met and the employee is cleared, the employee will continue to receive benefits until they are ready to return to work, or until they exhaust the time for which short-term disability benefits run.
Long-Term Disability (LTD) Insurance Policy
A long-term disability insurance policy covers monthly salary portions of an employee who is unable to work for a long period, due to a non-work-related accident or illness. This can be for a terminal sickness like cancer or a permanent non-job-related disability. LTD insurance has a benefit period that ranges from a few years to a lifetime. And, just as STD insurance, it covers only a percentage of your minimum salary – about 60%.
To be eligible for long-term disability benefits, here are the requirements you must meet:
- Provide medically verified proof that the employee is undergoing chronic pain or treatment for a severe illness that could last up to 26 weeks
- Have proof that you are unable to do any job
- Must have worked for the company for a while
- Injury or illness did not happen while the employee was carrying out an illegal act
- The condition was not caused by a job-related accident
In both cases, personal injury lawyers can help so do not hesitate to contact them.
You may have noticed that, in both cases, one of the similar requirements was that the injury or illness is not work-related. That is because workers compensation is a policy that already covers that case.sdsdsdssdsdsdsds