There is no way to tell when a sudden illness, accident or underlying medical condition can cause short or long-term disability, leaving you unable to earn a living and meet your regular expenses. Disability insurance is a great way to protect your income if you are too sick or hurt to work, so that you can pay your bills without using up your savings.
When you sign up for disability insurance, the policy provides coverage for all your basic expenses in case you are disabled. These include utility bills, home loan payments, school tuition, food, clothing and more. A comprehensive plan can help you maintain your standard of living and replace your income until you can return to work.
Disability insurance plans are available in a wide range of options to meet different needs. These include:
- Short Term Disability Insurance – As the name suggests, short term disability insurance policy provides coverage for the first few weeks after an accident or illness that leaves you unable to work. It replaces a part of your income so that you can meet your expenses and support your family while you are disabled, and is normally offered by employers.
- Long Term Disability Insurance – Long term disability insurance takes over when a short term policy’s coverage will not cover you for long enough. It protects and replaces your income for an extended period of time if you are left unable to work due to a disability. This policy could also be offered by your employer.
- Individual Disability Insurance – In case your employer does not provide you with a disability insurance plan or you would prefer to add further coverage, an individual disability insurance policy is the best choice. You can choose one which matches the financial needs of you and your family.