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Disability Insurance
Disability income
coverage replaces income lost by an employee when injury or illness prevents
the individual from working. Generally, disability income policies are
divided into 2 types:
-Those
that provide benefits for up to two years (short-term)
-Those
that provide benefits for a longer period, usually for at least five years,
to age 65, or for a life-time (long-term).
When provided on a group basis, the benefits are usually integrated with
benefits from Social Security and other public programs. The entire range of
benefits from these sources generally is set at a level that does not exceed
60 percent of earnings.
Individual disability income policies usually pay a fixed dollar amount of
coverage. This amount may be greater for those who are turned down by Social
Security. Individual disability income policies take many forms and may be
designed to fit the special needs of the individual policy owner.
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