Disability Insurance Benefits: Complete Guide | Trusted Choice

Disability Insurance Benefits

What Benefits Does Disability Insurance Provide?

(It could be exactly what you need)

Jessica Huneck | October 11, 2019
Disability income insurance benefits

Disability insurance is pretty cut and dry as far as benefits offered, but there are several differences that should be noted and discussed. This article will help you make a great decision when purchasing your disability insurance. 

A great independent insurance agent can help too. Think of them as your tour guide through the land of disability insurance. They are there to inform you of the facts and make sure you don't wander off into any pitfalls.

What Is Disability Insurance?

In a nutshell, disability insurance is a supplement of your income (usually 40% to 70%) that you can use to pay bills and stay afloat when you are unable to work due to an illness or disability. 

But there are many different types of disability insurance and a number of intricate details and terminology associated with each. So please continue.

What's a Disability Insurance Benefit Period?

Benefit period: This is a period of time predetermined by both parties (the insured and the insurer) when the insured can file a claim for coverage on their insurance policy. In disability insurance, their supplementation would be a percentage of their income in order to pay their expenses.

Insured: The insured is the person or organization covered under the insurance policy. They are typically the owner of the insurance policy and pay for the premiums but not in every case.

Insurer: The insurer is the entity (typically an insurance company) that is providing the insurance coverage or policy to the insured.

You know the definition of what a benefit period is, but how does it apply to disability insurance? Disability insurance can pay out benefits for months or years. If you have short-term disability insurance, then it will be one to twelve months. 

Long-term disability insurance will pay out anywhere from one year to decades. The length of the benefit period depends on whether the policy is short-term or long-term, the length of the disability or illness, and what the policy terms state.

It is best to discuss further details with a professional, your independent insurance agent. They can help you pick the right plan for you.

What Is the Elimination Period for Disability Insurance?

Elimination Period: The elimination period is the waiting period before the policy benefits start. In short-term disability plans, this can be as soon as seven days. In long-term disability plans, it is usually 90 days before the benefits kick in, all of which can be adjusted the more you’re willing to pay.

What Are Disability Insurance Riders and Their Benefits?

Disability insurance rider: A disability insurance rider is a great tool and is tied to a life policy where typically one percent of the face value can be used for disability insurance.

There is a bit more that goes into that and is best discussed with your independent insurance agent. 

What Are Social Security Disability and State Disability Program Benefits?

Social security disability insurance programs

Social security disability benefits can pay out for as long as you are disabled, normally until age 65. From there your retirement benefits will start and take over any supplementation of income needed.

State disability programs vary from state to state and are best checked with your local independent insurance agent. They have the lowdown on your disability information.

How Much Does Disability Insurance Cost?

Disability insurance pricing and benefits are all different. Each policy, benefit amount and length, and individual is not the same. Think Rubik's cube times 1,000,000 — the varieties and differentiating factor combinations are vast. 

That’s not an area that can be explained neatly nor accurately and is best left up to your local independent insurance agent.

What's So Great about Independent Insurance Agents?

Similar to your favorite kid-time superhero, an independent insurance agent is there to save the day. They are equipped and well-trained in all things insurance. Working with a magnitude of insurance providers, they are able to offer you the best coverage at a competitive rate. 

Yes, the independent insurance agent is a modern-day hero in a town of cutthroat salespeople, making them the best choice in a sea of options. Insurance picking is hard — leave it up to the professionals and save yourself the work.

Now, who's ready to get their insurance problems solved?