| Many individuals struggle to understand what | | | | duties of a job that you have been trained for |
| disability insurance covers. There are two basic | | | | through education, training, or experience. |
| forms of disability insurance, short-term and | | | | Individual disability policies cover a percentage of |
| long-term disability. Short-term as its name implies | | | | your income based on your occupation, the |
| is for a short period of time usually less than a | | | | hazard of your responsibilities, and your income. |
| year. Group short-term disability is more prevalent | | | | The elimination periods for disability policies usually |
| in the work place than long-term. One of the | | | | range from 30-365 days. If you become sick or |
| failures that individuals make is assuming that their | | | | disabled, exceed the elimination period, and |
| policy covers 100% of their income. The policy | | | | become certified by a physician as unable to |
| usually covers up to 66 2/3%, it may be only be | | | | work, you may receive a tax free benefit except |
| 50% for 13 weeks only. (Check your employee | | | | in rare cases (your employer pays for the policy). |
| handbook) Uncle Sam allows you to get the | | | | The policy is coordinated with any group disability |
| benefit tax free, but you cannot get more in | | | | benefits you may be receiving as well as Social |
| benefit than your pre-tax salary. It is very | | | | Security Disability Insurance if you qualify. |
| important that people read their employee | | | | Things to consider when thinking about Disability |
| benefits carefully. | | | | Insurance: |
| The two main definitions used to define if benefits | | | | Can I get sick? |
| under a disability insurance policy are paid include | | | | Do accidents occur? |
| own occupation and any occupation. Own | | | | Can I afford to self-fund? |
| occupation disability means you are unable to | | | | Can I live off my savings? |
| perform the substantial duties of your current | | | | Does my coverage at work cover short-term |
| position in a nutshell. Any occupation includes the | | | | & long-term disability? |
