Reliance Matrix

Short-term and Long-term Disability Insurance

Disability insurance comes in two main types: Short-term and long-term.

Short-term disability is generally for illness or injuries that will keep you out of work for a few days to a few weeks. Think of a broken arm or a typical maternity leave. Your benefits are paid as a percentage of your weekly earnings.

Long-term disability is to protect against longer absences from work due to more severe or chronic illness or injury. Long-term disability benefits are calculated and paid based on a percentage of your monthly earnings, and could stretch into several years depending on your condition.

That will never happen to me.

Disability is more common than most people realize. Accidental injuries can be the cause of a disability, however common chronic health conditions can also limit your ability to work. In fact, approximately 90% of disabilities are caused by illnesses rather than accidents.

I have enough insurance

Very few people hesitate to insure assets like their home or car, but many fail to protect their most valuable asset of all -your paycheck. Disability income protection insurance will help protect your financial security in the event that you cannot work. If you have saved 10% of your income each year – then 1 year of being totally disabled could wipe out 10 years’ worth of savings.

There is always Worker’s Compensation.

Disability insurance covers you when workers’ compensation does not. Workers’ compensation only comes into play if the disabling illness or injury was directly work-related. Only 1% of American workers miss work due to an occupational illness or injury.

I do not need another monthly bill.

Then you are in luck! Your employer-sponsored plan makes it possible to pay for your coverage at affordable group rates through convenient payroll deduction. You may be able to take your coverage with you if you change jobs. In the event that you become totally disabled, your coverage may be continued with no premiums due.