Disability Insurance Blog

Many people in Garden City have taken steps to protect their financial futures. They've saved for retirement and purchased life insurance policies in case they died young. However, one aspect of financial planning that sometimes goes forgotten is planning for the possibility that one will have to leave the workforce early due to a disability.

This is unfortunate, as many people may find that if they are unable to earn an income, they quickly go through what savings they have, if any. Moreover, applying for federal disability benefits can take years, and even once they are awarded they may not be sufficient to meet all of a person's financial needs. Therefore, planning for one's financial future should include planning for long-term disability.

Many employers offer disability insurance as part of their sponsored insurance program. Workers may feel confused about the fact that there are both short-term disability policies, as well as long-term disability policies. Do people really need both? How do they differ? These are common questions, and understanding the answers can help you appreciate the value of both forms of insurance.

Long-term disability and short-term disability usually have different terms, different rates of wage replacement and offer non-overlapping protection. You could find yourself fully dependent on your disability insurance policy for income and even medical coverage after an accident or sudden medical event.

When you are involved in an accident that takes away your ability to work and make a living, filing a disability claim can restore a portion of your income. There is not a single disability claim, however, that covers all instances. Making the decision between long-term and short-term disability is a complicated process that requires a full understanding of each type.

Short-term disability, as the name implies, is designed for those who are unable to work for short periods of time. Because these periods of disability are not long - most are covered for three to six months, although some are up to two years - they are among the most-affordable plans available. Short-term disability is also beneficial because of its quick start time. Typically, the coverage begins immediately after the injury or within two weeks. Also, short-term disability usually covers nearly 100 percent of an employee's income.

You've carried long-term disability insurance to protect yourself and your family from poverty in the event of a catastrophic accident or serious medical issue, such as a stroke. After years of paying for coverage, you found yourself in need of your policy. Whether it was a car accident or a sudden medical event, adjusting to permanent disability can take time. Unfortunately, getting medical help and making your home accessible are expensive.

When you can't work, it doesn't take long to drain your savings just trying to pay your necessary living expenses. If your inability to work is permanent, you could worry about buying groceries, paying your bills and even retaining your home. Long-term disability insurance should protect you from the worst-case scenario, but what happens when your claim gets denied because of an issue with your medical records or documentation?