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