Disability Insurance Articles

Finding Disability Insurance Coverage For Short Term Disabilities

2010-07-23

Disability insurance is an important part of an overall health insurance package, and one of the most commonly used elements is for short-term disabilities. This covers accident or injury from which the claimant will ultimately recover and be able to return to work, but without work he will be left financially bereft during the recovery period, which could be up to two or three months depending on the severity of the injury. According to the Council of Disability Insurance, some people-around one in seven-could be incapacitated for five years or more during their working life. Short-term disability insurance is therefore particularly crucial for those who do not have the financial resources to survive for any length of time without being unable to work and earn money.

Short-term disability insurance ensures the claimant, who is unable to work due to an injury or illness that has left them temporarily disabled, will have some form of income during the period that he/she is disabled. Short-term disability insurance does not replace the employee's salary at 100 percent; however, most policies pay out, on average, between 40 to 65 percent of the former salary for approximately four to six months. The longest period of time that short-term disability insurance allowance will be paid on average is two years; although, there are some rare policies that will cover the claimant for up to five years. In most cases, should the illness or injury still be preventing the claimant from working, they would be considered to be permanently disabled. Anyone with short-term disabilities also needs to take out a permanent disability insurance policy should the very worst happen, i.e., long-term or permanent disability.

The speed by which disability insurance will be paid can vary. In cases of obvious serious injury, most payments will begin within two weeks of the claim being made. Illness-based claims can take longer to begin payment, as the fact that the illness is preventing the claimant from working needs to be medically proven to the insurance company.

Short-term disabilities insurance can be taken out by the individual, but is also commonly offered by an individual's employer as part of group insurance coverage. Employers are usually the best resource for disability insurance policies, if not already covered as part of your contract. Some insurance companies do however offer "accident policies" to individuals. Disability insurance to protect against the possibility of short-term disabilities is a vital piece of coverage to ensure financial security during an already trying time.