Almost 50 million Americans are currently living with disabilities according to the United States Census Bureau. This number grows with each passing year. Numerous provisions have been put into place to sustain and support those suffering from debilitating injuries and conditions, including various types of insurance coverage. While each serves its purpose, not all are created equally.
Delving into the Different Types of Disability Coverage:
Several different types of insurance are available to cover expenses and income loss in the event of an injury or illness. These are proactive measures for those who want to provide for themselves and their families if disability becomes an issue at some point. Though the terms and conditions of these policies are fairly straightforward, disability attorneys are sometimes called upon to represent policyholders when certain discrepancies arise.
Short-Term Disability Insurance:
Short-term policies generally cover disabilities for up to a year though some variation in length. They pay as much as 80 percent of a policyholder’s gross income for a temporary inability to work. Surgery, injury recovery, and addiction treatment are a few of the situations potentially covered by this type of policy. Maternity and paternity leaves may also be included.
Long-Term Disability Insurance:
Available in two, five and ten-year policies as well as those lasting until retirement benefits take over, long-term disability insurance also bridges income gaps when disabilities occur. Though it often provides smaller percentages of policyholders’ gross incomes than short-term coverage, it does pay out for longer periods of time. Various forms of long-term coverage are available, each of which applies to different types and levels of disability.
Workers’ Compensation:
Employers are required to carry workers’ compensation policies to provide for their employees should a work-related injury take place. Though certain exceptions apply and specific regulations vary by state, this type of coverage pays out monthly benefits to help cover portions of injured employees’ incomes. Workers’ comp only covers injuries occurring on the job and may not pay out the full amount of resulting lost wages.
Supplemental Disability Insurance:
As the name indicates, supplemental disability insurance helps take care of expenses not covered by workers’ comp. It also fills gaps left by certain other private and employer-sponsored policies. It’s essentially a backup plan to cover a wide range of “what-ifs” generated by other coverage options.
These insurance policies are all effective options for people who want to secure their financial futures in advance of disability. As a national coverage information provider, Insurance QnA points out, though, they’re not the answer for those already living with a disability.
Coverage for Pre-Existing Conditions and Current Disabilities:
Conventional insurance providers tend to turn their backs on people currently living with disabilities or suffering from conditions known to worsen and lead to disability over time. For those, federal programs would be the most helpful solution. Two distinct options exist in this category.
- Social Security Disability Insurance: Numerous conditions are covered by Social Security disability insurance. These benefits are made available to those suffering from eligible disabling illnesses who’ve paid enough Social Security taxes to qualify.
- Supplemental Security Income: Disabled children, adults, and elderly individuals may be eligible for the Supplemental Security Income program. SSI benefits are provided to those who have inadequate income and resources to meet their financial needs.
Strict financial and medical guidelines must be met in order to qualify for either of these benefits. Complicated application processes and drawn-out approval periods also often come into play. As much as 70 percent of initial claims are said to be denied.
Look out for Ringless Voicemails:
Insurance agents and companies always try to not honor insurance claims. They try to work through ringless voicemail insurance agents so that they have an option to show that they tried to contact you, but you did not respond to their ringless voicemail. This is one of the most standard tricks that are being used by insurance agents on unsuspecting claimants. Please be careful of this and always check your voicemails.
In a Nutshell:
Numerous disability coverage options are available. Some are meant to be precautionary measures whereas others are reactive solutions. None are completely fail-safe or appropriate in all situations. Weigh these options and your circumstances carefully before deciding which one is suitable, and don’t be afraid to ask for help if you run into problems along the way.
