Disability plans are intended to provide an income if a person is unable to work due to a mental or physical disability.
Social Security Disability Insurance (SSDI) is available, which is a federally run program. According to statistics, there were more than ten million Americans claiming Social Disability in 2011.
An employer may pay compensation if the employee is disabled due to a work injury, providing that the liability is with the employer.
Plans can also be purchased from private providers.
Both short-term and long-term plans are available. A short-term plan will pay a percentage of the salary while the person is temporarily disabled, usually up to a maximum of two years. A long-term plan will become relevant once the short-term payments have stopped. The claimant should continue to receive a portion of their salary under the long term plan. These plans can help to provide financial security if a person is unable to work.
If you are considering taking out a plan, companies and products can easily be compared using the internet. A price comparison site can be used, which may also include reviews on the products and providers. You may also wish to visit a broker for further advice.
When choosing a plan, there are several aspects that need to be considered. These include the premium, the amount of cover provided and the disabilities that are covered. The premium will need to be affordable, but you will also need to ensure that the amount of cover provided is adequate. You should calculate your financial needs to work out how much cover is needed. Most providers have strict guidelines regarding which conditions are covered, so you should ensure that you check this before buying a policy.
Normally, you can obtain a quote online, either from the provider directly or through an independent comparison site. It is a good idea to get several quotes before making a decision.
- Plans provide an income if a person is unable to work due to disability
- A federal benefit program is available
- Plans can be purchased from private providers