Nowadays, an increasing number of people are opting for short term disability insurance. In fact, the number of people amounts to millions. The fact that their ailing health conditions will not suffice for generating enough income for their dear ones bothers most people. In such cases when you are aware of your deteriorating health conditions, it is ideal to choose short-term disability insurance plan. These plans are important for your family, as they fill your gap by providing a sustainable income during your most unproductive years. A short-term disability insurance policy (STD) allows you to get partially paid leaves. The policy mostly depends on an organization and your tenure of service. Some organizations even allow you a full paid leave during the time of your disability to work.
Individual short term disability insurance allows you to plan your disability periods, so that you can reap the benefits later. Most disability periods are unproductive. Besides, you do not earn from them. By choosing an STD plan, you can plan your disability periods and make them productive as well as maintain them as good source of income. In fact, STD plans are ideal for people who do not have much savings to thrive on. Besides, it is optimistic to buy a short-term insurance plan, as it provides you resourceful sum in the times of need.
However, there are many short term disability insurance plans available. You can choose the one, which suits you the best. However, if you are new to disability insurance, you need an agent to work with. Besides, you may additionally choose insurance websites that allow you to compare different STD plans. Moreover, they allow you to compare quotes and choose the cheapest policy. Thus, online insurance website lets you decide on which plan to go for as well as guides you about the plan that carries least risk. Thus, depending on your requirements and working conditions, you can choose a plan.
It is often vulnerable to worry during periods when you are inactive and off from work. In addition, if days of absence are more than few weeks, it is sure to become a case of worry. Everyone wishes a good health, however sometimes our health does not respond to desired actions. It is during such times, when people take forceful leaves to take rest and regain their health. However, they pay a heavy price in return. Their exclusion from work affects their whole month’s salary. On contrary, on buying individual short term disability insurance plan well ahead of time, your salary is safe from receiving a tighter blow. In fact, on buying a suitable STD plan, you ensure to get anywhere between 40% to 60% of your monthly salary even after taking longer leaves based on medical reasons. In some cases, you might receive 100% of your salary regardless of your leaves and absence from work. In fact, this percentage depends on which plan you choose and how long you served your organization in return.
Short term disability insurance places a slab over both the maximum amount to pay and number of days of your leaves. In case of an injury, the plan gets activated automatically without any prior intimation to serve. However, in case of sickness, the plan consumes waiting periods of few days after which it becomes activated. In fact, the waiting period for activation of plan during sick leaves is for your benefit. Owing to waiting period slab, you get to utilize your normal sick leaves that every organization promises for it employees. Only after once you get sick and your sick leaves expire, your STD plan starts without any waiting period slab. Thus, you earn without losing your salary that is beneficial for your family member during your absence from work.
Thus, short term disability insurance plan proves to be useful for people, who have responsibilities of family. Using STD plans, you can never miss from paying your electricity bills, house rents as well as mobile and other utility bills. Thus, with STD plan under your arm, no sickness or healthy issue can dither your strong will for supporting your family. It is ideal to act soon than react later as much of your future is governed by what you do today.
If you live in this era, you must be familiar with the term ‘insurance’ and the role it plays in day-to-day life. There are different types of insurance today such as car insurance, pet insurance, home insurance, travel insurance, life insurance among many others. Of all the basic types of insurances available in the market, life insurance and car insurance are the most common that many people opt for, but mostly at the expense of other equally important categories of insurance. This article seeks to expound more on a much-neglected, although very important category of insurance today – the disability insurance.
Disability insurance is a type that will help you when you can no longer afford to work because of a disability brought about by an illness, injury, or an accident. Contrary to many people’s belief, disability insurance isn’t complex at all, actually it is very straight forward in that it will take care of your income when you can longer get out there and work for it because of a disability.
Just like in any other type of insurance today, disability insurance has different types and policies all which are tailored for different needs. Therefore, doing a thorough market study and analysis will be very important before finally committing yourself to any type of disability insurance policy so as to ensure you reap the most out of it when the time finally comes of using the policy that you have been paying faithfully for the better part of your being able to work.
Generally, disability insurance is divided into two – short term and long term disability insurances. Short-term disability insurance will cover approximately 40-60% of your total gross income while its long-term counterpart will cover 75-80% of your total gross income. By the same token, a short-term policy can be available for a period of one year while its long-term counterpart can be available for a period of up to 5 years. Be advised though that the longer the period, in which you will receive the benefits, the more expensive it will be when it comes to paying the insurance premiums.
There are important factors that you need to consider before choosing any time of disability insurance policy. Such things as total disability and renewability are very critical points of consideration. Always choose a policy that can only be cancelled by you and not by your insurer. By the same token, you should avoid insurance policies that expect you to pay a penalty fee for cancelling the policy.