Health insurance plans are extremely important in all walks of life. According to the U.S. Centers for Disease Control and Prevention (CDC), in 2016 alone, there were approximately 28.6 million people without health care plans in the United States.
One of the most important, yet most confusing type of care is group disability insurance. Hopefully, this information will help you better understand the ins and outs of group disability insurance when it comes to both long and short term care.
Here are some of the important things to keep in mind when it comes to both long and short term disability insurance coverage:
Length of coverage
Obviously, long term coverage lasts much longer than short term — but how much longer? Typically, long term disability insurance policies cover periods from multiple years to even the rest of a person’s life, though the ideal policy covers an individual until the age of 67 years old. Short term disability insurance coverage, on the other hand, typically lasts between 30 to 120 days.
Beginning of coverage
Long term disability coverage kicks in after short term disability and employer benefits end. It’s important to note that there is no overlap in this coverage because they involve separate periods of coverage. Your best bet is to ensure that you do not leave a gap between your coverages so you can earn replacement income every step of the way.
Price of insurance
Because long term is a much more substantial form of coverage, it costs more than short term. You can, however, customize both forms of coverage (though long term is more customizable), but customizing your coverage will typically result in higher costs. The overall insurance expense depends on various aspects like occupation, coverage length, salary, and other personal information.
You should always perform whatever job you have as efficiently and safely as possible, but accidents do happen. Whether you’ve been injured or not, it’s best to prepare for the future and acquire these insurance packages as soon as possible.