| What is Disability Insurance?
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| | Most people are familiar with two types
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| "The Social Security and Supplemental
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| | of disability insurance: short-term
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| Security Income disability programs are
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| | disability, and long-term disability.
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| the largest of several Federal programs
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| | Short-term disability insurance is
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| that provide assistance to people with
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| | included as part of a benefits package
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| disabilities. While these two programs
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| | with many different employers, and
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| are different in many ways, both are
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| | usually provides an income in the early
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| administered by the Social Security
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| | part of disability. Short-term
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| Administration and only individuals who
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| | disability insurance generally provides
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| have a disability and meet medical
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| | coverage for a period of several weeks,
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| criteria may qualify for benefits under
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| | and does not exceed a two-year term.
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| either program."
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| | Long-term disability, however, can last
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| - Social Security web site, June 2006
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| | for a period of several years. These
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| The Social Security office will want to
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| | types of policies may be included as a
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| check your medical history to be sure you
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| | part of employment, in a benefits
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| qualify for disability benefits. The
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| | package, but many purchase these
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| Social Security office is one way to get
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| | disability insurance policies
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| disability benefits, but in most cases
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| | individually.
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| these benefits will not be substantial
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| | As far as disability insurance goes,
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| enough for families.
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| | however, there are still more policies to
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| Disability insurance can be obtained
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| | learn about. One type of disability
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| through any number of insurance
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| | insurance is the Own-Occupation
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| companies. In the event that you are
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| | Disability Insurance. The definition of
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| disabled, this insurance will serve as
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| | this policy reads:
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| financial protection. You will receive a
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| | "The inability to perform the material
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| percentage of your gross income from your
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| | and substantial duties of your regular
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| disability insurance policy, income that
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| | occupation, the insurance company will
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| will ensure your own financial safety.
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| | consider your occupation to be the
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| You do not have to go through the Social
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| | occupation you are engaged in at the time
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| Security Office to take out a disability
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| | you become disabled, they will pay the
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| insurance policy, nor to receive the
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| | claim even if you are working in some
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| benefits from that policy. The Social
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| | other capacity."
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| Security disability program is not
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| | Another kind of disability insurance is
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| related to any disability insurance
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| | the Income Replacement Insurance. This
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| policy that you take out.
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| | is a very popular type of disability
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| "Individual disability insurance is truly
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| | insurance, and most insurance agents are
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| a basic concept. It is an insurance
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| | familiar with this policy. The language
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| product designed to replace anywhere from
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| | of this type of disability insurance
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| 45-60% of your gross income on a tax-free
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| | reads:
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| basis should a sickness or illness
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| | "Because of sickness or injury you are
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| prevent you from earning an income in
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| | unable to perform the material and
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| your occupation. Every disability
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| | substantial duties of your occupation,
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| insurance policy from every insurance
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| | and are not engaged in any other
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| company is very different, this is not a
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| | occupation."
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| product to simply shop for the most
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| | Common in employee benefits packages,
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| competitive rate. To buy the cheapest
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| | Gainful Occupation Coverage is another
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| disability insurance policy on the market
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| | popular form of disability insurance.
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| is to throw money away. The odds of
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| | The language here is worded very
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| getting paid a monthly benefit under a
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| | carefully:
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| cheap contract may be significantly lower
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| | "Because of sickness or injury you are
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| than receiving benefits from a quality
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| | unable to perform the material and
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| contract."
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| | substantial duties or your occupation, or
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| - About Disability Insurance web site,
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| | any occupation for which you are deemed
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| June 2006
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| | reasonably qualified by education,
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| Types of Disability Insurance
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| | training, or experience.
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