From injuries to illnesses, disability insurance policies help keep you financially stable when you cannot work. If you aren’t sure what these policies entail or if you need one, learning more about them will help you decide. Below is an overview of their basics and the two main types of disability insurance available.

The Basics

Disability policies are available through employers, professional associations for your field, and from insurance agencies as individual policies. Plans vary in coverage and situations they include, but getting one from an agency gives you control over how much, how long, and under what circumstances you’ll receive compensation. Some will only pay out if you can’t work in a chosen profession, while others only pay if you can’t work at all. All policies have a cap, or limit, amount that they’ll pay over a specified period. In some instances, you may qualify for a part-time disability policy that provides partial payments if you can work part-time, but not full-time.

The Types

The two main types of disability policies are short-term and long-term. Short-term disability usually covers up to 70% of your base salary, with policy lengths available for up to one year. However, there’s a short waiting period before you begin to receive benefits.

In contrast, long-term policies replace up to 60% of your base income but last much longer. Coverage can end when you’re fit for work, after 2 to 10 years, or when you retire. However, you may have to wait longer before receiving benefits after facing an injury or illness. Some policies will also cover the cost of physical training or rehabilitation to prepare you for a return to work.

You never know the future, so talk about your disability insurance options with Toohey Insurance Service in Somerset, KY. With over 35 years of experience, this insurance agency offers disability, life, dental, vision, and health insurance policies with affordable premiums. They serve parts of Kentucky, Tennessee, and Illinois, with an A+ rating from the Better Business Bureau®. Learn more about their disability and health insurance policies online. Call (606) 678-0540 to make an appointment.