Disability Insurance Articles

Getting Disability Insurance For A Part Time Job

2011-04-30

Many individuals don't know that they can continue to collect disability insurance benefits while working part time. Part time disability insurance has fewer benefits, but overall is a feasible option, especially if you love to work. This article talks about getting disability insurance for a part time job.

Let us begin with a laconic description of disability insurance types. It can be either short-term disability (STD) coverage, which has an upper limit of two years, or long-term disability (LTD) coverage, which provides coverage for several years or even an entire lifetime. Disability insurance coverage is provided by the government and by private companies. Both of these "legally" provide part time disability insurance, although the benefits of the coverage are reduced.

The Social Security Administration (SSA) provides work incentives to people with medical conditions as they try to get back in the job market. SSA allows part time disability insurance benefits in trial periods of up to 60 months. Individuals continue to receive full benefits under SSA's disability insurance even while working part time, as long as their total income doesn't cross the threshold of $1000.

The monthly income limit for receiving part time disability insurance from the SSA is $1640 in case of the insured party being visually challenged. SSA disability insurance is taxable if total household income of the individual exceeds the SSA program's limit.

Similarly, a few state governments provide temporary disability insurance, under which individuals are provided benefits as they recuperate from their disabilities. They may or may not work part time. Overall, the government supports part time disability insurance, but the insurance benefits may be reduced if an individual's total income from disability insurance payments and part time works exceeds his/her total income before the disability.

Private insurance companies pay part time disability insurance, as well. Individuals with disability insurance from private companies can continue to work part time while receiving insurance payments. However, the insurance payments may be reduced. The disabled person may have to pay for medicine out of their own income from the part time job. Insurance companies will pay residual benefits to account for the loss in a person's earnings due to a disability. Residual benefits come into play when an individual looses a minimum of 20% of their pre-disability income. Several insurance companies pay residual benefits up to 10% of an individual's pre-disability income in cases where the loss in income is upwards of 75%.

Part time disability insurance is a boon to the disabled person trying to get back to regular work. It isn't hard to obtain and retain, providing your case is genuine and you follow the insurance guidelines.