Disability Insurance - Insurance for the Injured and the Sick

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Disability Insurance Insurance for the Injured and the Sick


TABLE OF CONTENTS

Disability Insurance Insurance for the Injured and the Sick

Different Styles of Disability Insurance

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Disability Insurance Insurance for the Injured and the Sick

Accidents happen at any given time. Injury due to an accident often results in costly emergency room bills and hospital stays. Some people become injured and temporarily disabled. Thus, they are unable to work for a certain period of time. More often than not, employers offer disability insurance benefits for full-time employees to help cover the costs of those unexpected and highly expensive medical bills. Without this insurance, out-of-pocket costs for emergency

room

alarmingly high.

visits

can

be


With a specific short term disability insurance plan tailored to your needs, you can receive a certain percentage of your income while you are unable to work. This amount is typically between 45 to 60 percent of your base salary. This kind of disability

insurance is

available for 3 to 6 months, and it is usually effective immediately following


an injury. There is a maximum amount of money you are allowed to receive from this insurance plan, and there is also a maximum length of time you can be covered. If you think that you need to receive benefits past six months, find out from your employer what is available for a longer period of time. In the event that you become injured, applying for short term disability

insurance

would

be

beneficial. Although it is only a partial amount of your earned income, it is better than exhausting funds from a


savings or checking account to pay for expenses during the time you are not working and earning your full salary. Also, it allows you to still receive some money while you are temporarily out of work. If you are unable to work for a certain amount of time due to illness, you are also eligible to apply for short term disability insurance. Unlike being injured, however, if you are sick, there may be a waiting period between the time you apply and the time the benefits are in effect. Also, before you can begin


to receive benefits, employers might require you to use all of your accumulated sick days and any other time off that you might have earned.

Before apply-

ing, speak to a representative from your human resources office to find out exactly what is required by your employer. This could help you avoid any issues that could prolong the process and delay the start date of which you can begin


to receive benefits.

If you choose not

to go through your employer, you may apply as an individual. If you are selfemployed, you are also eligible to apply for short term disability insurance. By applying for this insurance, you can continue to earn money while in recovery from an injury or sickness. In the event that either occurs, the last thing you should have to stress over is your job and how being out of work will affect yourself or your family financially.

It

is

beneficial

to

be

knowledgeable in the kinds of insurance


benefits you may be eligible to receive even though you are not physically able to go to work.


Disability Insurance Different Styles of Disability Insurance

Disability insurance is an important form of insurance, not only to employees but also to employers. If an employee is out of work on disability, other problems such as finding a replacement or finding ways to continue productivity can occur. For this reason, employers will want to research the different types of insurance that they are able to purchase. Depending on the size of the company, you may want to consider different types of insurance which will be able to cover not only your


employees but also yourself if something should happen.

Key Person Insurance is useful to employers when the person who gets put on disability is one of the most important people in the company. An example of this is the person who is in


charge of maintaining day to day operations on the floor. This sort of insurance will allow for the training of a new employee to replace the one who was put on disability. If the disabled employee is scheduled to come back after a procedure or rehab, you can put the new employee on short term disability insurance in order to continue with proper employee insurance coverage while they fill this temporary position. Taking this step will ensure that an employer is able to continue their daily


functions of the company without added risk. Business

Overhead

Expense

Insurance for protecting the employer. If the employer should become disabled and unable to work, this insurance will help pick up some of the business expenses he or she may have during this time. This includes rent, utilities, and even employee salaries during the period in which the employer may be out of work. This is to make sure that the company continues to produce even though the employer is unable to work.


Keeping this type of insurance policy is a great idea for any sized company, as it ensures operations continue to run smoothly.

In the instance where an employer is unable to handle day to day tasks, this type of coverage may play a large role in keeping the company afloat.


Employer-Supplied Insurance is when the employer pays a part of the money into the worker's disability fund. Most commonly this is known as Worker's Compensation which is paid out to the employee who was working and got injured on the job. However, most people end up getting hurt off the job, in which case worker's comp will not cover the disability. This form of disability insurance will help your employees when they are unable to physically

work.

Offering

adequate

insurance to employees also fosters a


loyal environment. In this day and age, employees are apt to stick by an employer who shows their willingness to care for employees in a time of need. So no matter what form of insurance, even short term disability insurance, you can be assured that your employees will be taken care of. You can even make sure your company is insured if you are unable to work. After all, a company does not stop just because of an injury or illness. By getting the right type of insurance for your company, you will not have to


to worry about spending too much money and not having the proper coverage when it comes time to use it.


benefits you may be eligible to receive even though you are not physically able to go to work.


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