Employee Disability Insurance – Protection for Work & Life

Employee disability insurance is insurance coverage typically offered by your employer as an additional insurance that you can purchase along with your health, dental, vision, and life insurance.  There are two kinds of employee disability insurance: short-term disability and long-term disability. Each are useful in protecting your financial stability in case of an accident or health concern that prevents you from being able to work.

Short-Term Employee Disability Insurance

Short-term employee disability insurance typically provides you with a portion of your earned income when you have to be off work for a given amount of time. Common uses of short-term employee disability insurance include:

  • maternity leave – When you have a child and have short-term disability insurance, you can receive payments (typically two-thirds of your regular income) for six to eight weeks while you recover from having the baby. Some plans allow fathers to take short-term disability for paternity leave as well.
  • surgery – If you have to have surgery and will be unable to perform the duties of your job for an extended period of time, such as after a hysterectomy or back surgery, short-term employee disability insurance can help you make sure you can still pay your bills while you are not working.
  • illness – If you have a chronic condition or develop a disease like cancer that makes it impossible for you to carry out your duties, short-term employee disability insurance may cover your time off. 
Regardless of your need, it is always important to check your policy to make sure you have the coverage you need. Many employers offer multiple choices with short-term disability insurance, where you can choose the amount and length of coverage you have.

Long-Term Employee Disability Insurance

In many cases, your future health and capacity to work is unpredictable. While many people go through life assuming they'll always be healthy enough to work and pay their bills, the truth is that many people – nearly 20%, according the U.S. Census Bureau, will encounter a health issue that results in a long-term disability that prevents us from working and meeting financial responsibilities. Long-term employee disability insurance is designed to provide you with financial protection should catastrophic illness occur.
  • Long-term employee disability insurance is relatively inexpensive for the peace of mind and protection it provides.
  • Long-term disability payments may be based on your condition and pay only for specified periods of time, so be sure you understand your policy.
Short- and long-term employee disability insurance often seems like a wasted expense, especially if you are young and healthy, but it is a wise way to protect yourself and your family from unexpected catastrophe.

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