For most adults having a job and making a paycheck is crucial to make sure you have a roof over your head and food on the table. Unless you are a lottery winner or have a large savings, you most valuable asset is your ability to earn an income. But what happens when you are unable to work? That’s where disability insurance comes in. 

Disability insurance is coverage that provides you with income protection, should you lose time on the job due to an injury or illness. 

Is there different types of disability insurance?

Yes, the 2 most common are Short Term Disability (STD) and Long Term Disability (LTD) Insurance. 

  • Short Term Disability (STD) Insurance coverage is designed to cover you for a short period of time. Coverage usually starts within 1 to 15 days of the injury or sickness and typically lasts for about 10 to 26 weeks. STD coverage allows you to receive a fixed weekly amount or a set percentage of your income. 
  • Long Term Disability (LTD) Insurance coverage is designed to cover you for a longer period of time. Coverage usually starts 3 to 6 months after the injury or sickness begins. The length of coverage varies, but can range from 2 to 10 years or until you reach age 65. LTD insurance pays a set percentage of your regular income after a specific waiting period. Most LTD plans are designed to start after the STD plan has been exhausted. 

You can purchase one or both to fit your specific needs. 

Why is it important?

The risk of disability is greater than most employees realize. When you become disabled and loose time at work, your source of income is lost. Nearly 1/3 of employees will miss more than one month of pay due to injury or illness. In addition to lost income, you are likely to experience an increase in medical expenses due to your injury or illness. 

Disability insurance can be purchased on your own or sometimes through your employer. If you and your family count on your income to pay bills disability insurance is something you should consider. Let the professionals at Rinehart Insurance help you select a plan that best fits your needs. 

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