Disability Insurance Programs | The Complete Guide

If you or someone you know were to become seriously injured or ill, the last thing you'd likely want to worry about is how you'd pay the bills without income from your job. Fortunately, there are a number of disability insurance programs available to help pay for daily living expenses. However, you may not know which ones you qualify for and which are right for you.

An independent insurance agent can not only help you get set up with the right disability insurance coverage, but also help you find the best available rate. Your agent knows where to find the top disability benefits programs and which one would work for your unique situation. Until then, you can use our guide to disability insurance programs and how they differ.

What Are Disability Insurance Programs?

A disability insurance program can help protect you financially if you're unable to work due to serious injury or illness. You may also hear disability insurance referred to as income protection insurance. There are several options available, including Social Security disability insurance, state disability insurance, individual disability insurance, and group disability insurance plans. 

Both short-term and long-term plans are available, and understanding the differences in each type of coverage can help you choose the right option. Disability Insurance, in all its forms, supplements your monthly income anywhere from 40%-70% in the case of a non-work-related injury or illness. You'll need to compare your options to determine the best disability insurance plan for you.

What Is Social Security Disability Insurance?

Social Security disability insurance (SSDI) is a payroll or worker-funded federal government program that provides supplemental income to citizens who are unable to work due to a disability. An individual can collect SSDI benefits for as long as they are disabled until they retire. After retirement, SSDI benefits cease, and retirement benefits begin.

To qualify for the SSDI program, you'll need to meet the following requirements:

• Have a medical condition that meets Social Security's definition of disability
• Have worked in jobs covered by Social Security
• Have worked long enough and recently enough under Social Security

An independent insurance agent can help you find out more about SSDI benefits and whether you qualify for this coverage.

What Is State Disability Insurance?

State disability insurance is very similar to SSDI, except that it's run through a state's government. This coverage supplies the insured with funding to help supplement their income if they become ill or disabled and are unable to return to work. 

Currently, only the following states and U.S. territories offer state disability insurance programs:

If you live in one of these areas, ask an independent insurance agent about getting state disability insurance and whether this is the right option for you. 

What Are My Individual Disability Insurance Options?

Disability insurance for self-employed individuals, employees, and employers is easy to find. There are two main options available for individual disability insurance.

• Short-term disability insurance: This option is purchased by employees, employers, and self-employed alike. It offers short-term disability coverage that usually lasts from a month to a year and supplements a greater percentage of your regular income (usually up to 70%) than long-term coverage.
• Long-term disability insurance: This option is also purchased by employees, employers, and the self-employed. Coverage can last for years, decades, or until you retire, supplementing anywhere from 40%-70% of your normal income.

Your independent insurance agent can help you determine if short-term or long-term disability insurance is the best option.

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What Are My Group Disability Insurance Options?

Employer disability insurance programs are typically also easy to qualify for. The primary difference between individual disability insurance and group disability insurance is that the latter is tied to your W-2 income or base salary. You can choose from short-term or long-term group disability insurance plans.

How Much Does Disability Insurance Cost?

All disability insurance programs are different, and as such, each offers different benefits. Further, each individual or employer who purchases disability insurance is different. So, unfortunately, it's difficult to offer an average cost for disability insurance programs without knowing the specifics of which plan you've chosen and other details.

It's best to contact your independent insurance agent for pricing options. They can provide multiple disability insurance plan options, all with different price points to suit your needs.

How Can I Enroll in a Disability Insurance Program and Which One Is Best?

Now that you know all about disability plans, how do you sign up for one? The best place to start is with an independent insurance agent. They can help narrow down which disability insurance program is right for you. Even better, they can help you enroll in disability insurance benefits right away.

Your agent will discuss how much coverage you may need and how long you want that coverage to last. They should also review your risk factors as an individual or as an employer, present your options, and advise which program they recommend. Ultimately, the choice is yours. And depending on your age and health factors, you may only have certain options. 

If you're an employer, an independent insurance agent can help you find the disability insurance program that's right for your employees. Your group is unique, and they can assist in finding the best coverage option for them. Your agent can also help you understand different contribution scenarios, so you know exactly how much you'll need to spend.

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Why Work with an Independent Insurance Agent?

Independent insurance agents have access to multiple disability insurance companies, so they're free to shop and compare disability insurance quotes and program options for you. They'll help you find the right disability insurance program at an affordable rate. And down the road, your agent can help walk you through the disability claim process and update your policy when necessary.