Definition of Disability policy or insurance is worth knowing. It is a kind of insurance in which financial benefits are paid to an insurer because he is handicapped. In other words, it refers to a condition in which one cannot work to win any income. Such persons actually exist and they need help. It is workers’ compensation benefit and mostly covers employees.
In response to such problem, so many companies have come to insure such lives. However, there are rules that help them to measure when a person is said to be disabled. Since we are done with the definition of disability, we shall discuss the types of disability insurance below.
Types Of Disability Insurance
There are two main types of disability insurance. They are:
- Long Term Disability Insurance(LTD): This is a type that protects employees from losing their income due to inability to work caused by a severe condition. This condition could be illness, accident, etc. More so, an employee may be sick for up to 2.5 years, this insurance ensures that the family gets financial support.
- Short Term Disability Insurance(STD): Just like the name implies, an employee may have injury or accident in the office. He may incur such at any other place. This type of insurance supports him for the mean time as he takes some time off. It is the opposite of Long Term Disability Insurance. It does not last long as the LTD lasts.
Tips About Disability Insurance
- An insurer should know that elimination period exists in insurance.
- A potential customer should wait throughout the period of elimination so that insurance will be effective. Elimination period refers to waiting period before benefits start, starting the day you become ill or injured.
- Social security offers disability salary including other essential treatment to the disabled.
- Lastly, Cost arrangement is based on what caused the disability and how severe it it.
In conclusion, this article has fulfilled its aim which is to you the Definition of Disability insurance policy. Disability insurance policy and its tips are very essential.
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