If an accident or illness prevents you from working, disability insurance protects your income. With disability insurance, it is possible to receive part of the lost income.
What Is Short-Term Disability Insurance?
Short-term disability insurance (STD) is one kind of disability insurance policy. That can assist you in remaining financially secure if you are disabled or sick and are unable to work. This coverage lets you keep receiving pay in a set weekly amount or a certain percentage of your income. This coverage enables you to keep receiving a fixed weekly payment or a certain percentage of your income. The typical Short-term disability insurance is available within one to 15 days after the event that caused your disability.
Short-term disability generally lasts approximately 10 to 26 weeks, but the duration varies according to policy. When the Short-term disability coverage expires, Long-term disability (LTD) coverage typically begins.
What is Long-Term Disability Insurance?
Long-term disability is a form of disability insurance that provides employees with a fixed amount of their income after a specific waiting time. For instance, when an employee gets covered under short-term disability insurance, the LTD insurance will kick in when the STD policy is exhausted, generally within three to six months.
Workers get covered by LTD insurance in the case of long-term incapacity before retirement. Employers usually provide LTD policies as an element of their benefits package. The duration of LTD plans is differently. Some might get restricted to between two and ten years; however, other plans pay out until age 65.
What Is the Reason Disability Insurance Is Important?
The risk of being disabled is much greater than many employees know. If you are disabled and lose your time at work, your source of income disappears. About one-third of workers cannot work for more than a month of pay because of an injury or illness. Alongside the loss of revenue, you’re most likely to experience increased medical costs because of your disability injury or illness.
What is Supplemental Disability Insurance?
Medical insurance cannot cover all expenses arising from an illness or injury. Costs and bills may go up, especially if you must take a temporary leave of absence from work and subsequently lose your income. Supplemental insurance can assist you in paying copayments, deductibles, and other medical expenses not covered by your company-sponsored insurance plan.
Suppose you feel that the insurance coverage provided by the employer-sponsored group insurance plan doesn’t meet your individual needs. In that case, contact an independent insurance agent or carrier to get recommended.
How Ottawa Life Insurance Can Help
Ottawa Life Insurance offers businesses of all sizes comprehensive solutions to meet their company’s requirements and their workers’ needs. It is proud to ensure that employees are comfortable and well-informed about their benefit plan choices. At Ottawa Life Insurance would be delighted to assist you in ensuring your and your employees’ well-being. Call (613) 454-1424 or email info@ottawa-lifeinsurance.ca if you need assistance or business solutions.
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