Disability insurance helps the employee financially when an illness or injury prevents him from working. Although many employers offer some type of disability insurance to their employees, you can also buy one to expand your coverage.
What types of disability insurance exist?
Short term: they have a maximum benefit of two years.
Long term: they have benefits that can last a lifetime.
Ask these questions when you buy individual disability insurance:
How does this policy define disability?
When do the benefits begin?
How long are the benefits?
How much money does the policy promise to pay?
What help is available?
There are two programs administered by the Social Security Administration (SSA) that offer help for people with disabilities:
· The Social Security disability insurance program pays you if a terminal or non-terminal medical condition prevents you from working for at least one year. Some of your family members may also receive benefits.
· The Supplemental Security Income (SSI) program offers financial assistance to adults and children with disabilities from low-income families. People over 65 can receive benefits if their income is below the required limit.
For more information call 1-800-772-1213 (press 7 for Spanish) or 1-800-325-0778 (TTY for the hearing impaired).
State disability insurance
The following states offer temporary disability insurance. These insurances offer a substitution of short-term income.
Hawaii (in English)
New Jersey (in English)
Rhode Island (in English)