Life Insurance Policies

Disability Insurance

Disability insurance from an employer is a benefit often offered to full-time workers. Health insurance is also a popular workplace benefit. Dental is often separate, but offered as an optional benefit. Benefits might start on the employee’s first day of work while others may make the employees wait 30 to 90 days.

Workplace benefits are good for employees because they receive discounted premiums. The amount received depends on the employer, but the discount is usually 50 percent less than the regular premium.

Disability insurance partially covers a portion of an employee’s salary when they are unable to work because of illness. Physical and mental illnesses are part of the list of applicable disabilities maintained by insurance companies. The average payout is around 70 percent of a worker’s pay, but some payouts are much less.

The disabled worker must receive medical care from a doctor. They must also notify the employer and the insurance company about their disability. The doctor must verify that the employee is unable to work. This person must follow a treatment plan so the employer and the insurance company have an idea when the employee will return to work. The employee receives benefits when the insurance company decides the claim is legitimate.

An employee can get short-term or long-term disability insurance. Short-term is designed for people who will be ill for less than a year. Long-term is for people who require more than a year to recuperate.

Disability insurance is a benefit because it provides income when a person can’t work. The injured employee can focus on getting well instead of worrying about paying bills. Some employees might even have job security. If the employee’s illness coincides with the Family and Medical Leave Act, then the person can have job protection for 12 weeks.