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February 21, 2014

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

Over the course of a 40-year career, illness and injury can prevent a hardworking individual from earning a steady income.  Disability income insurance is designed to replace some portion of the income when the unthinkable happens.  Two different categories of disability income insurance have been crafted.

  • Short-term disability – Following an accident or illness, the waiting periods must pass before payments from the insurance company begin.  Time and dollar limits apply to this policy.  In most instances, the worker is better off to create an emergency savings account instead of buying this type of insurance.  Consult with an insurance professional to make this determination.
  • Long-term disability – Serious injuries and long-term illnesses are the greater threat in most instances.  The waiting period for a long-term income disability policy can be from 30 to 720 days.  Substantial savings must be available to sustain monthly household expenses until the disability policy begins to pay.  Limits on this type of policy vary widely depending on the desired features.

Financial advice is required to determine how to structure the disability income insurance coverage.  As the benefits on the policy increase, the annual premiums will rise, too.

For all your disability insurance needs in Mesa, Arizona, contact Brewer-Lloyd Insurance Group, today!