When it comes to protecting your financial wellbeing, disability insurance should be one of the first types of coverage you consider. Unlike worker’s compensation, disability coverage will protect you even if you’re injured away from the job. However, if you’re like most people, choosing between long-term and short-term disability coverage can be a bit confusing. Before you select a policy, make sure you understand the differences and benefits each type of coverage offers. Here’s what you need to know.

Short-Term Disability Insurance

Short-term disability coverage helps provide a portion of your income should you be injured and unable to work. The benefits provide about 80 percent of your gross monthly income while you’re out on leave. The payments will be made for up to six months, helping reduce your financial burden while you heal and recover. Typically with this type of coverage, you’ll have to wait for about two weeks to a month before receiving your first payout. If the injury persists and is severe enough to keep you from working, the coverage will help cover part of your income.

Long-Term Disability Insurance

Long-term coverage also provides a portion of your income if you’re injured, but does so for a longer period at a lower percentage rate. You’ll receive up to 60 percent of your gross monthly income anywhere from two years all the way to retirement, depending on your coverage and the extent of your disability. Most individuals can expect a payout from their long-term disability insurance 90 days after the injury. Keep in mind, the longer the policy lasts, the more expensive the insurance will be each month.

Which Is Right for You?

Ultimately, both types of policies will help offset financial strain if you’re injured for a few months. However, if you engage in risky hobbies or are worried about your ability to provide for your family if you’re permanently injured, a long-term policy may be best. If you’re concerned about only covering your living expenses for a brief recovery period, short-term coverage will be sufficient.

Interested in learning more about disability insurance? Contact the team at Toohey Insurance Service in Somerset, KY. Their experienced insurance agents will work to get to know your individual needs to ensure that you have the best coverage possible at a price you can afford. Learn more about their services and coverage areas online and call (606) 678-0540 to speak with a member of their team.