The Specific Difference Between Long-Term and Short-Term Disability Insurance

Disability insurance is a necessary evil that you have to deal with. No matter how far off you think it may be, accidents and illnesses do occur. What do you think will happen if you are deemed physically incapable of performing your daily tasks at work. If you are not attending the eight hours a day which is needed for you to earn a decent salary, what will happen if you are unable to perform your daily tasks at work due to a disability?

This is the reason why there is a stipulation in the law that a disabled person who is physically or mentally incapable of earning a living needs to obtain some form of disability insurance. Since a disabled person will not be able to perform normal activities due to an injury, illness or disease, the more that there is a reason for them to obtain disability insurance.

In order to be prepared for such eventualities, you need to know about the two basic types of disability insurance. Here is a brief explanation of the basic difference between the long-term disability insurance and the short-term disability insurance. First, with the short term disability insurance, coverage will start on the first day of disability. Basically, what this includes is pregnancy, illness o physical damage caused by an accident. As long as the person who is the beneficiary of the short-term disability insurance is under the supervision of a certified health professional, then the benefits will be payable. However, if you have already exceeded 180 days and you are still incapable of attending to your duties at work, then you may require a long term disability insurance plan.

On the other hand, a long-term disability insurance plan will provide you with financial coverage in the event that an accident causes an injury or an illness that will prevent you from attending to your duties at work for quite a long time. Usually, the stipulation of a long-term disability insurance is that the individual is covered financially up to the time that he or she is able to return to work, or until the time that retirement age is reached.

Although you may have exerted a lot of time and effort into choosing the best type of insurance company that will provide you with low insurance premiums and ample disability insurance coverage, you should also be aware that the claiming process takes time. Whether you have taken advantage of the short-term or long-term disability insurance plan, there is still a waiting or processing period on the end of the insurance company. This means that you need to wait for a particular number of days before you can actually start claiming your benefits. In the meantime, you can probably use your savings to tide you over until the time that the insurance company is able to provide you with the benefits that you deserve from the disability insurance plan that you have obtained.