Help protect a portion of your paycheck from unexpected illness and injury that keeps you from working.
What is disability insurance?
Disability insurance provides partial income so you can pay your bills if you get too sick or injured to work. Disability happens to more people, more often than you may think. In fact, more disabilities are caused by illness than injury, including common conditions like heart disease and arthritis, and most disabilities are not covered by Workman’s Compensation.1
Some employers will offer short and long-term disability benefits to their employees. A short-term policy helps you immediately after an incident, and a long-term policy helps provide financial protection for disabilities that can last for years. You can also pay for additional coverage on top of the benefits you get at work to help provide extra financial protection.
Who is disability insurance for?
If you depend on the income you receive through work to pay your expenses, then you should probably consider disability insurance. It ensures that you can continue to receive partial income if you end up too sick or injured to work.
What are the benefits of disability insurance?
People may incorrectly assume what qualifies as a “disability.” For example, they may believe the term applies to catastrophic conditions, such as paralysis from a car accident or a debilitating stroke. However, disabilities typically are the result of less severe injuries and more common conditions such as pregnancy, back pain, depression, and digestive disorders.
“mental health,” which includes substance abuse, is one of the fastest-growing diagnosis categories in the past five years, along with digestive and circulatory.2
- Disability definition
- It gives you money after an illness or accident
- Small business owner protection
- Financial wellness
Disability definition
Every disability policy has a specific definition of disability that you must meet in order to get benefits. The two most common definitions used by disability insurance companies are:
- Own occupation: a person is considered disabled if they are no longer able to perform the occupation they had prior to becoming disabled.
- Any occupation: a person is considered disabled if they are unable to perform any job at all.
- Here are the types of disability insurance we offer:
- Individual
- Group (through work)
- Short term
- Long term
- Supplemental
- Individual disability insurance
Individual disability insurance can be ideal for anyone who doesn’t receive disability insurance through work. It’s also an option for high earners looking for extra coverage. Not only can you buy this policy on your own, it also stays with you even if you change jobs
- Group disability insurance
You can sign up for employer-sponsored coverage at work. Most employers that offer disability insurance pay some or all the cost of premiums. You can also buy disability insurance through the workplace. Some employers don’t pay for disability coverage but offer it as a voluntary benefit. This lets employees buy coverage through the employer’s insurance broker at a group rate.Short term disability insurance
Short term disability insurance pays you a portion of your income immediately after an accident or serious illness prevents you from working. We offer it for employers and their employees. You might be able to receive this through your job.Long term disability insurance
Long term disability insurance is a policy that pays you additional funds for long-term injuries. It takes affect after your short-term insurance runs out. We offer long-term policies for employers and their employees.Supplemental disability insurance
If you want more protection, you may want to add extra coverage on top of your long term or individual disability plan. Supplemental disability insurance can be a great add-on for employees and individuals who want to protect a greater percentage of their income, bonuses or commissions. You may even be able to get a policy through your work.
A disability insurance policy will spell out:
- How much you will pay in premium. Just like any other type of insurance, this is the payment you must make each month to keep your coverage in force.
- How the policy defines disability. Some policies will pay out a monthly benefit if an injury prevents you from working at your normal job, but allows you to do other types of work that will nonetheless reduce your income. Other policies will not pay benefits if you are able to work in another type of profession, even if you earn less money.
- How much you will receive in benefits. In most cases, your benefit amount will be a percentage of your income. Policies typically pay 60 to 80 percent of what you earned before your disability.
- How long your benefits will last. The benefit period may be a certain number of months or years, or up to a certain age.
More than 25 percent of today's 20-year-olds will experience a disabling event that prevents them from working for at least three months before retirement. And when you consider the most common causes of long term disabilities, it’s really not all surprising. Take a look for yourself here:
- Arthritis
- Back pain
- Cancer
- Depression
- Diabetes
- Heart disease
- Stroke
Yes, you read that right. The Council for Disability Awareness reports that 90% of claims that are filed for long term disability benefits stem from medical illnesses, not physical injuries.
To be clear, this doesn’t mean injuries such as fractures, sprains, and strains of muscles and ligaments are not disabling. What it does mean though is that the scope of disabilities that can prevent you from earning an income is a lot broader than most people realize.