Disability insurance isn’t insurance for injuries and illness. Instead, it’s insurance that pays for your regular paychecks if you become too ill or disabled to work. There are several types of disability insurance that you can choose from. Sometimes employers will even provide disability insurance. Take a look at the options that are available and see which type might be right for you.
Long-term Disability Insurance
This type of disability insurance will pay out your monthly benefits for an extended period of time if you were to become too ill or disabled to work. This time period can be from anywhere from two years to up retirement. This policy typically costs around one to three percent of your annual salary and your monthly benefits will be up to 60% of your gross monthly income.
Short-Term Disability Insurance
Short-term disability insurance, as the name suggests, will pay out your monthly benefits for a short period of time if you were to become too ill or disabled to work. It will replace up to 80% of your paycheck for up to one full year. This type of insurance is usually offered by your employer.
Supplemental Disability Insurance
Supplemental disability insurance is a federal program that will provide payouts to some disabled workers and families after an application process. The process is usually long and drawn out. Note that only 30% of applicants will be accepted into the program at the first application and will receive just over $1,000 a month.
Employers in every state are required to have workers’ comp. If you get injured at work, employers have this in place and you will receive a monthly payout. However, you will receive a monthly payout only if you were injured at work. Workers’ compensation laws vary by state, and Maryland law states that every employer must provide workers compensation coverage except for sole proprietors, farming employers, and independent contractors.
Want to Learn More?
These are just some of the many types of disability insurance policies available. Freedom Insurance Agency can help better explain your options. If you’re curious about which disability insurance is right for you or want to learn more about the ones discussed above, we’re here to help. We handpick our Maryland disability insurance policies and are sure we can find one that you’ll love.