Understanding Different Types of Disability Insurance

Disability insurance covers a range of expenses for people who are rendered disabled or too ill to earn a regular paycheck. If your income has been reduced or stopped by a disability, you may qualify for a type of disability insurance. The different types depend on the severity of the disability.

Long-Term Disability Insurance 

Long-term disability generally lasts two or more years. Some can even last until the individual retires. These benefits are paid on a monthly basis and is around 60% of the individual’s monthly gross income.

This type of insurance can be purchased whether you work for another employer or if you are self-employed. 

You are eligible for benefits when you are limited from performing the material and substantial duties of your regular occupation due to your illness or injury.  You must also be under the regular care of a licensed physician.

Short-Term Disability Insurance  

This plan typically covers individuals who are disabled for a few weeks, or less than a year.  You can purchase this type of policy on an individual basis, or group Short Term disability through your employer and some states offer short term disability.   

Supplemental Disability Insurance  

All group disability insurance plans have certain limitations or gaps in coverage (Examples: Taxation, offsets, reverse discrimination, etc...).  Because of this you may need an individual supplemental disability plan to cover these limitations.  These plans can also help when you are between jobs and lose your group disability coverage.

What Kind of Disability Insurance Do I Need? 

The type of disability insurance plan you need depends specifically to your own personal needs.  At Brokerage Solutions we tailor a plan based on your needs (your income, age, occupation and duties) it’s not a one plan fits all approach.