WHAT IS IT?

Disability Insurance plans provide benefit payments directly to an employee when an employee is unable to work when they are totally disabled due to injury or illness.

There are 2 major types of policies are Short-Term and Long Term. Short term policies generally start paying benefits after 1 to 3 weeks post illness and pay benefits for 13 to 26 weeks while long term policies start usually after 90 days of disability and pay benefits for 2 year or until age 65. 

WHO IS IT FOR?

Disability insurance can replace your income if you’re unable to work due to illness or injury. Most claims for disability aren’t from on-the-job injuries, but for illness, cancer, pregnancy, and depression. Anyone that supports their family or supports themselves who does not have at least 12 months of savings to cover all of their expenses should consider disability  insurance.

WHAT IT IS NOT

Disability insurance does not replace nor is it an alternative to Workers’ Compensation Insurance.

DO STATES PROVIDE DISABILITY?

Currently, there are 5 states with state-sponsored disability plans that are funded by mandatory contributions made by employee payroll  contributions. The states that have these programs are California, Hawaii, New Jersey, New York, and Rhode Island.