Depending on the nature of an injury from an accident, an employee could be out of work for an extended period. The loss of those paychecks may put a strain on monthly bills. To help fill in the gap, disability insurance provides financial relief to cover ongoing expenses. Here is a helpful guide on how most policies work.

Coverage Features

Most standard policies are designed to pay for the portion of a person’s income while they recuperate after an injury or illness. The payout is typically based on the policyholder’s monthly income up to a certain dollar threshold.

The two most common types of coverage are long-term and short-term. With long-term plans, the policyholder’s partial income is paid along with other services, including courses for additional job training. Disability payments typically continue until the person fully recovers. Some plans cap coverage at a certain number of years when the person reaches retirement age.

Short-term disability insurance works the same way as long-term with a few exceptions. Coverage is generally limited to up to one year and the policyholder will only receive payouts of their monthly job income for that time. There is typically a two-week waiting period after the diagnosis before the disability insurance payments start. With long-term coverage, the waiting period can be up to 90 days after the diagnosis.

Why Do You Need Coverage?

No one can predict when or if an injury occurs. The outcome can be financially devastating, especially if the person is the sole provider of income for the family. Disability insurance provides a much-needed cushion to help pay monthly bills and child-rearing expenses. When a person becomes disabled due to an injury or illness, it is also hard to predict the recovery period. In cases involving cancer or physical rehabilitation after a heart attack, the recuperation could take years. Disability insurance offers relief during those unexpected times.

If you have a spouse and children, it’s worth the time and effort to make sure they are taken care of. Let Bradford Hegler - State Farm Agent in Villa Rica, GA, help you take a proactive step by securing disability insurance. He provides customized policies designed for each of his clients. To learn more about protecting your family in case an injury or illness occurs, call (770) 456-4000. Visit his website for information on insurance options.