Depending on your job, you may be a high-percentage candidate for disability insurance. Beyond that, may people become disabled – temporarily or permanently – outside of their job. To protect your future livelihood, as well as that of your family, you may want to consider looking into disability coverage.
There are two types of disability policies: Short-Term Disability (STD) and Long-Term Disability (LTD). STD policies have a waiting period of 0 to 14 days with a maximum benefit period of no longer than two years. LTD policies have a waiting period of several weeks to several months with a maximum benefit period ranging from a few years to the rest of your life.
When considering disability insurance, consider this: Not too long ago, the Social Security Administration estimated that one in four 20-year-olds will become disabled and unable to work before they reach the age of 67. If you think you are safe with Workers Compensation, a Forbes Magazine article pointed out that Workers Comp replaces lost income if an injury or illness occurs on the job, but fewer than 5% of disabling accidents and illnesses are work-related. Most (90%) of long-term disability claims are for illnesses, not accidents.
Also, some policies pay benefits if you are unable to perform the customary duties of your own occupation. Others pay only if you are unable to perform any job suitable for your education and experience. Some policies define disability in terms of your own occupation for an initial period of two or three years and then continue to pay benefits only if you are unable to perform any occupation. “Own occupation” policies are more desirable, but more expensive.
It is a good idea to talk with your insurance professional to see what your options are as far as disability protection goes.