In today's uncertain world, you never know what is going to happen. Life can change in an instant. Many feel their best policy is to get life insurance. While that is important, short term disability insurance is also important. It can mean the difference between being able to support your family for a time when you have a short term disability. The U.S. Census Bureau has reported that people have a one in five chance of becoming disabled. If the disability is serious enough, it can prohibit you from making a living and supporting your family financially. This situation can be difficult if you do not have savings in the bank that can support your family. If you have a short term disability, even if you do have money set aside in the bank, it is difficult to live off your savings for so long. Your short term disability generally lasts anywhere from two weeks to two years. Short term disability is usually covered in your employee package.
Most short term disability insurers will work with employers to try to get them back to work as soon as possible. They want to see their employees healthy, rehabilitated and energized enough to come back to work as soon as possible. They do this because they save money if the person can return quickly to work. By the time you come to a long- term disability period, you begin to be the one managing the claim and also paying for it. Remember to check with your employer and see if they offer short term disability insurance. Many companies pay the entire insurance premium, or they will cover a certain amount of the coverage. There are employers who require waiting periods and possibly limited benefits for the first year.
You can purchase short term disability insurance by the same agents who sell you life insurance or annuities. If you decide to strike it out on your own in obtaining the short term disability insurance, the average premium could cost you more than five to ten times as much as a short term disability group policy would. It depends on age, career, and your annual income. You also have to take a medical exam proving that you are insurable and have no prior disabilities that you could claim in the future once you have short term disability insurance.
Here are some basic questions to ask the different short term disability agents when considering which plan you want to purchase:
• What is the basic definition of the short term disability in my policy?
• How long will I receive my short term disability benefits?
• How much will I receive?
• Will my benefit amount adjust for inflation?
• Is there a waiting period before the short term disability benefits begin?
• By working part-time, can I still get partial benefits?
• How does social security, worker's compensation or unemployment benefits become affected by the short term disability benefits?
• What exclusions exist in the short term disability policy?
• Is the company issuing the policy strong financially?
• Can I renew the policy without having to go through a medical exam.
These questions should help you in knowing exactly what is included in your short term disability insurance. It is advisable to meet with a few agents to compare polices and quotes. Prepare a list beforehand of the questions or concerns you have. If the agents you are working with do not make sense, cut you off or skirt around the issue, it is recommended to find an agent willing to take the time to help you understand the short term disability policy thoroughly.
By: Emily Thomas