Different types of disability insurance

Whether or not Tennessee residents realize it or not, disability is something that can happen to anyone, regardless of their age. In fact, one quarter of people currently 20 years of age will become disabled before reaching the retirement age of 65. Disability insurance can provide them with the safety net they need to ensure they do not lose everything.

Short term disability insurance

60-70% of an employee’s income is covered by short-term disability insurance, defined as an injury or illness that will last less than a year. It is possible injured individuals may have to wait about two weeks before their short-term disability benefits begin arriving.

Long term disability insurance

Though injured employees have to wait about 90 days before they begin long-term disability insurance, these benefits can last for an undetermined number of years. They pay between 40 and 60% of one’s income. Depending on one’s injury, they can continue until someone reaches the age of retirement. However, this type of insurance depends on the company one works for—sometimes, coverage begins if no type of job can be taken on, while other times coverage may begin if someone is unable to work in any position.

Social security disability insurance

Social security disability insurance, on the other hand, allows someone to earn benefits while working by paying taxes into Social Security. There are certain conditions that have to be met before someone can become eligible to receive them, such as the type of medical condition one has and the type of limitations one has with regards to the type of jobs can be performed.

It is important to understand how private insurance can differ from social security and what coverage one has from one’s employer and what must be purchased separately. Those who want to understand their coverage and whether their injury qualifies for it may want to consider consulting an experienced attorney.