What is Disability Insurance?
Disability Insurance—also referred to as Disability Income Insurance, Income Protection or DI—is a type of insurance that replaces part of your income in the event you become sick or have a mental or physical disability that prevents you from working. The amount of your income that is replaces is usually a percentage of your pay.
There are two common types of disability coverage. This includes short-term disability insurance and long-term disability insurance.
What is Short-term vs. Long-term Disability?
Selecting the right disability insurance plan is key, and understanding the differences between Short-term Disability (STD) and Long-term Disability (LTC) allows you to make better-informed decisions when choosing the right disability insurance coverage for your needs.
Whether it's short-term relief or long-term security, having the right protection ensures financial well-being during challenging times.
For more details on the differences between Short-term Disability vs. Long-term Disability Insurance Plans, see our comparison chart below.
| SHORT-TERM DISABILITY | LONG-TERM DISABILITY |
DURATION OF COVERAGE | Typically covers a shorter period, often ranging from a few weeks up to a year. | Provides coverage for an extended duration, starting after the short-term disability period ends. It can last for years or even until retirement age, depending on the policy. |
WAITING PERIOD | Has a relatively shorter waiting or elimination period before benefits kick in, often around 0 to 14 days. | Usually has a longer waiting period, ranging from several weeks to months, before benefits become payable. |
BENEFIT AMOUNT | Offers a higher percentage of your salary, sometimes close to your full income, during the covered period and is paid out weekly. | Provides a lower percentage of your salary compared to short-term disability but extends over a longer period and is paid out monthly. |
COVERAGE | Primarily designed for temporary disabilities, such as maternity/pregnancy, recovery from surgery, illness, or injuries that are expected to heal. | Covers more severe and long-lasting disabilities that may prevent you from working for an extended period or permanently. |
Secure your financial future with Disability Insurance.
Your most valuable asset isn’t your home, car or 401k—it is your ability to make a living.
Contact our team today for more information.
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