Home - insurance - 3 Types Of Disability Insurance And Their Benefits

3 types of disability insurance and their benefits

3 types of disability insurance and their benefits

A health condition or disability can make it difficult to work, carry out everyday tasks, and lead healthy lives without assistance. In such cases, having an insurance policy in place that offers certain benefits can be a great source of monetary assistance. One could also get approved for disability benefits, which can help improve their overall financial situation. Here are the common types of disability insurance coverage options and key benefits one can get:

1. Short-term disability insurance
Disability insurance can help replace a portion of the income one loses if they are unable to work due to a prolonged illness or injury. Short-term disability insurance starts paying benefits within one to two weeks of a qualifying illness or injury. It also covers an individual for a benefit period that is usually 13 to 26 weeks. One should note that short-term disability insurance covers between 40% to 70% of the income. The policyholder will continue to receive benefits until they can return to work or until they reach the end of the benefit period. Conditions that qualify for short-term disability claims include pregnancy, mental health issues, musculoskeletal issues, and injuries. One should note that the insurance benefits extend to an injury or illness unrelated to one’s job.

2. Long-term disability insurance
The type of policy is designed to last for several years. It covers a portion of the policyholder’s income if they are excessively injured or too sick to work for an extended amount of time. The benefits usually last 5, 10, or 20 years or until retirement age. The coverage amount could range from 60% to 80% of the monthly salary. To qualify for long-term disability benefits, one must file a claim detailing the illness or injury and wait for approval from the insurance company. The most common conditions covered by long-term disability insurance include:

– Musculoskeletal disorders
– Muscle and ligament strains, sprains, and fractures
– Mental health disorders
– Cancer
– Heart attack, other circulatory disease, and stroke

3. Social Security Disability Insurance (SSDI)
This type of coverage is a part of an individual’s Social Security benefits. It offers monthly payments to those with a disability that prevents or limits their ability to work. Those with disabilities, blindness, and sufficient work history (typically 5 out of the last 10 years) are eligible to receive the insurance benefits. The benefits include a monthly payment and Medicare coverage. Two years after one becomes entitled to the disability benefits under this scheme, they are enrolled in Medicare. The payment amount is also based on the work history before one encountered the disability. Family members of those affected may also be eligible for benefits. So, for instance, the spouse can avail of the benefits if they are either 62 years or older or are caring for the child (who is younger than 16 or disabled) of the person with a disability. Additionally, unmarried children who meet the age requirements or are also disabled can also get the SSDI benefits.

One can also find relevant insurance benefits through other government and private programs.

Previous Read

9 mistakes to avoid for smooth Medicare enrollment

Navigating the intricacies of Medicare is a significant milestone for individuals approaching the age of 65 or those qualifying due to certain conditions. It marks a crucial step towards securing comprehensive healthcare coverage. However, the process can be daunting, and overlooking important details can have lasting consequences. It is also crucial to note that while Medicare provides comprehensive coverage, it doesn't cover every healthcare expense. By setting realistic expectations, individuals can explore supplemental coverage options effectively. Missing the Initial Enrollment Period (IEP) The Initial Enrollment Period is a critical timeframe for enrolling in Medicare. It typically begins three months before an individual turns 65 and extends for three months after. Failing to sign up during this period can lead to delayed coverage and potentially result in permanent penalties. It's crucial to mark this period on the calendar and ensure timely enrollment. Overlooking Medigap enrollment Medigap plans, also known as Medicare Supplement Insurance, provide additional coverage beyond what Original Medicare offers. These plans can help cover co-payments, deductibles, and other out-of-pocket expenses. The Medigap Open Enrollment Period is the best time to enroll, as it guarantees acceptance regardless of pre-existing conditions. Missing this window may result in limited options and higher premiums. Assuming Medicare covers everything While Medicare provides comprehensive coverage, it doesn't cover all healthcare expenses. Understanding what is and isn't covered is crucial for effective healthcare planning. Original Medicare does not cover vision, dental, and long-term care. This awareness helps individuals explore supplemental coverage options like Medigap, Medicare Advantage, or standalone dental and vision plans. Failing to reevaluate coverage annually Healthcare needs can change over time due to factors like evolving health conditions or shifts in treatment requirements. It's important to review and reassess Medicare coverage annually during the Annual Enrollment Period (AEP). This allows individuals to make any necessary adjustments to their plans to ensure they continue to meet their healthcare needs. Ignoring Part D coverage Medicare Part D provides coverage for prescription treatments. It's crucial to carefully evaluate prescription treatment options, considering factors like formulary, co-pays, and network pharmacies, to choose a plan that aligns with specific treatment needs. Not enrolling during the Initial Enrollment Period may lead to late enrollment penalties and gaps in prescription coverage. Not researching Medicare Advantage plans Medicare Advantage plans, or Medicare Part C, offer an alternative to Original Medicare. These plans are offered by private insurance companies and often provide additional benefits like dental, vision, and prescription treatment coverage. It's important to research and compare available plans to find one that best suits individual healthcare needs and preferences. Disregarding State Health Insurance Assistance Programs (SHIPs) SHIPs offer free, unbiased counseling and assistance to Medicare beneficiaries. They provide valuable information on various aspects of Medicare, including plan options, enrollment, and cost-saving programs. Failing to take advantage of this resource can lead to missed opportunities for valuable information and potential cost savings. Not understanding Medicare's network restrictions Medicare Advantage plans often have networks of healthcare providers. It's essential to verify if preferred doctors, specialists, and hospitals are in-network to ensure that services are covered at the highest benefit level. Failing to do so may result in unexpected out-of-pocket costs or the need to switch providers. Skipping preventive services Medicare covers a range of preventive services at no cost to the beneficiary. These services include vaccinations, screenings, and annual wellness visits. Neglecting these essential preventive measures may lead to undetected health issues and missed opportunities for early intervention, potentially impacting long-term health outcomes.

Next Read

A guide to applying for social security disability form

Applying for disability benefits at the Social Security Administration (SSA) can be challenging. An individual may feel overwhelmed with the various forms to be filled out and the numerous questions to answer. However, the process can be simplified with the right tips and guidance. Therefore, here's a comprehensive guide that discusses things to know before applying for SSA's disability benefits, including which forms to fill out and how to apply. The additional forms Most people know that the SSA-16 form is the primary application form that individuals must complete to apply for Social Security disability benefits. However, many individuals may not know that SSA-16 is not the only required form. The government may require applicants to fill out additional forms to provide details. These additional forms include the following: Form SSA-3373-BK: This form refers to the ‘function report’ form. It requires the applicant to mention how their condition or disability affects their ability to work and their daily activities. A few daily activities it asks about include dressing, bathing, caring for family or pets, etc. Form SSA-3369-BK: This form refers to the 'work history report' form. In this form, the applicant must provide details about their work history, including previous job positions and responsibilities. Additionally, the form requires information on how the applicant's current condition prevents them from performing their previous work duties. Form SSA-821-BK: This is the ‘work activity report’ form. It requires the applicant to mention their income and if they have spent money on items or services related to their condition (like a service animal). What to mention and what not to mention When filling out the application form for SSA's disability benefits, an individual needs to know what to write. For instance, one must only write about the disabilities or conditions a medical professional has diagnosed. Additionally, the condition will only be considered relevant if it directly affects the individual's ability to work. Therefore, they must avoid mentioning other symptoms or conditions that might not be relevant to the application. The applicant must avoid exaggeration and answer the questions concisely. Make sure all the details are up-to-date Individuals must also ensure that all the details they provide in the form are accurate and up-to-date. This includes details such as work history, contact details of their doctor, etc. If any of this information is outdated, the SSA may be unable to verify the authenticity of the application. As a result, the individual may face a lot of inconvenience in getting their application approved. Ways to submit the application Applying for the SSA is a simple and direct process. They have provided several options for individuals to submit their forms. These options include the following:   Through the SSA website: One can simply visit the official website of the Social Security Administration. Under the ‘Benefits’ tab, one will find the ‘Disability’ option, where one can submit their forms. By calling: Individuals can also call the toll-free number of the SSA to request a submission of their application. The number is 1-800-772-1213 and is available Monday through Friday. By visiting a local SSA office: One can also visit their local SSA office and submit their applications in person.    

Trending Articles

01

Everything you need to know about chronic fatigue syndrome

Chronic fatigue syndrome is a condition that causes extreme tiredness and fatigue that does not go away even after resting. The causes of the condition are yet to be known. However, there are some theories indicate several factors which include: Viral infection Stress Or several factors in unison Once the symptoms are identified and the condition is diagnosed, treatment can be taken to get relief from symptoms. Understanding all aspects of the condition, including its stages, diagnosis, symptoms, and prevention can help in managing it effectively. Different stages and phases of chronic fatigue syndrome The patients of chronic fatigue syndrome undergo four phases of the condition. Their response towards the treatment can also vary greatly depending on the phase that they are going through. These phases are: Phase I: Crisis or trauma Phase II: Stabilization Phase III: Resolution Phase IV: Integration During all the phases, a chronic fatigue syndrome patient undergoes some physical, psychological, and social changes that are easily noticeable. Diagnosis of chronic fatigue syndrome No one test can diagnose a patient with chronic fatigue syndrome. This is because the symptoms of chronic fatigue syndrome resemble several other health conditions. Therefore, a lot of patience is required for the diagnosis of the condition.
02

What you should know about depression

Depression is a mental health disorder that results in bouts of continuous sadness. A clinical mood disorder can lead to physical and emotional suffering, and can also change one’s behavior. Frustration, anger outbursts, lack of energy, sleep issues, anxiety, disinterest in eating, concentration issues, and suicidal thoughts are also common symptoms of this disease. Depending on its severity, the illness can challenge one to lead a normal life, too. Diagnosis There are many different methods a medical professional can use to determine if one is affected by depression. Psychiatric evaluation is the most common way to determine if one is suffering from the disease. The mental health doctor will interview the affected person to understand their thought process, mood, and other symptoms. Some doctors may compare symptoms with the ones listed in the Diagnostic and Statistical Manual of Mental Disorders (DSM-5). This makes it easier for them to understand the condition. A physical exam is also performed to determine if any physical health issue is caused due to this mental condition. Stages of depression Depending on the level of sadness, the stages of depression can be divided into five stages: Stage 1 Even though the signs of mental disease are hard to miss, for most people, it starts with denial.
03

Important things you should know about diabetes

The pancreas is an important organ in our body that produces insulin. It is required to help the glucose pass to our cells from the blood. That is how energy is created, which is the fuel we require to function. When the pancreas is unable to produce insulin, the glucose level in one’s blood increases. This can result in diabetes, which can lead to organ damage. Types of diabetes There are mainly three kinds of this disease. Type 1 diabetes It can be most commonly seen in children and adolescents. Having said that, it can occur at any age. The insulin production of one’s body decreases with this condition, and they require daily injections to control their glucose levels. Type 2 diabetes Around 90% of people who have diabetes suffer from this type. It is most commonly seen in adults and results in one’s body failing to properly use the insulin that is produced. It can be kept under control by maintaining a healthy lifestyle, but one may also require medicine in the advanced stages. Gestational diabetes This can be seen during pregnancy if the glucose level in one’s blood increases. It can affect both the child and the mother.
04

Gout – Diagnosis, stages, and prevention

Gout or gouty arthritis is a form of arthritis that commonly occurs in the joint located at the base of one’s big toe. It can also be seen in other joints and results in swelling, sudden pain, and tenderness. It can happen to anyone and occur at any moment, even suddenly in the middle of the night. The good news is that it can be prevented and treated. Diagnosis of gout Multiple medical tests can be used to determine if one has this form of arthritis. Below is a list of the most common tests. Joint fluid test The doctor uses a needle to collect fluid from one’s joint and test the same under a microscope. If urate crystals are found in the fluid then they have the condition. Blood test For gout detection, the doctor may suggest a blood test. The amount of creatinine and uric acid present in one’s blood indicates if they have it or not. However, the result of the blood test may not always be conclusive. X-ray imaging If one has joint inflammation, the doctor can use X-ray imaging to determine if it is caused by any other reason or gouty arthritis. Ultrasound A musculoskeletal ultrasound test is used to determine if one has gout or any other form of arthritis.

Our Blogs

Stages, diagnosis, and prevention of ADHD

Stages, diagnosis, and prevention of ADHD

ADHD, short for attention-deficit/hyperactivity disorder, affects children worldwide, and this also often carries on into their adulthood. Some of the different problems faced by kids suffering from ADHD include sustaining attention for a long time, impulsive behavior, and hyperactivity. There might be other problems associated with ADHD, like low self-esteem, low grades in school, and difficulty in keeping up with relationships. More often than not, symptoms of ADHD are seen to have decreased with age. However, there are cases wherein ADHD symptoms never subside. Levels of ADHD There are three different levels or stages at which ADHD can affect individuals. They are: Predominantly inattentive ADHD This level of ADHD may be related to missing details very easily and getting distracted often. Also, one may get bored very quickly. One has difficulty in processing new information, and there is also the tendency to not listen properly. One might not be able to follow directions very clearly and also lose things like pencils or papers. It has been observed that girls are more likely to get inattentive ADHD than boys. Predominantly hyperactive-impulsive ADHD This is mostly associated with symptoms like restlessness and difficulty with sitting still. Kids suffering from hyperactive-impulsive ADHD have a tendency to talk consistently, and it’s less likely that they will engage in quiet activities.
Read More
Understanding skin aging

Understanding skin aging

Changes in the skin are one of the biggest signs that the body is aging. But how the aging of skin takes place depends on a lot of factors such as our diet, lifestyle habits, stress levels, and the like. For example, if you smoke regularly, it can lead to the production of free radicals, which damage healthy skin cells and cause wrinkles. So, let’s dig a little deeper into skin aging so that you can diagnose it and prevent it for as long as possible. Stages of skin aging As you age, you will start noticing changes in your skin. These changes take place in phases or stages. Learning about these phases can allow you to take better care of your skin and stay away from everything that can prove to be harmful to it. So, these stages of skin aging are: Stage I – Between 25 and 35 years This is the time when your skin will look extremely voluminous to you. But, this is also the time when the early signs of aging will start to appear. Therefore, it is important that you follow a good skincare regime. Some wrinkles can start appearing on the forehead. Lines can also start to appear on the face when you make normal expressions such as laughing, smiling, or frowning.
Read More
Stages, diagnosis, and prevention of addiction

Stages, diagnosis, and prevention of addiction

There are three terms that one can relate to addiction – reward, motivation, and memory. Addiction is when the body craves a behavior or substance in an obsessive pursuit of a reward. The person will have little concern about the consequences of the particular behavior or substance. Things to note in case of addiction Some of the attributes that one can relate with addiction include an inability to stay away from the substance, lack of self-control, an outrageous desire for the substance or behavior, ignorance towards the problems that the behavior might be causing, and a growing tendency to ignore the emotional response. Addictions have been known to interfere with daily life and there are also cases of relapse and remission. The complications of addiction can be physical, emotional, as well as financial. Stages of addiction There are five main stages of addiction. These include: Experimentation Every addiction starts with experimentation and during this stage, one cannot understand that this is the beginning of an addiction. One cannot be sure that this will turn into something serious, and hence no necessary steps are taken at this stage. A simple way to find out how this will turn into addiction is understanding the reason for experimenting and how often a person experiments with new substances.
Read More
Top debt settlement companies in the USA

Top debt settlement companies in the USA

Incurring debt is really common in this age and era as everything has become extremely expensive, from college education to owing a house. If you ever feel that your debt is too large and you may not be able to pay it in time, then you can seek the help of a debt settlement company. These companies essentially communicate with your creditor to try and lower your debt and the rest of it is typically forgiven. Given below is a list of the top 9 debt settlement companies in the USA. National Debt Relief If you have USD 7,500 or more in debt, then the National Debt Relief can be a great choice for you. It is one of the most prominent debt settlement companies in the country. The initial consultation is offered for free, but you will have to pay 15-25% of the settled debt amount as a fee. Freedom Debt Relief This a dedicated company that offers debt relief services to people who have at minimum USD 7,500 to USD 10,000 in debt. 15-25% of the settle debt amount is charged as fee once a settlement is negotiated, and in return, they offer the possibility of settling the debt within 24-48 months.
Read More
Allergies – Stages and prevention

Allergies – Stages and prevention

The immune system of our bodies is constantly fighting against viruses and bacteria to keep us healthy. However, in certain cases, the immune system may also end up fighting some substances that are not always harmful. When this happens, you experience an allergic reaction. The allergens are the substances that cause the reactions. With a little carefulness, you can prevent the allergies effectively. The allergic development Even though an allergic reaction can vary from person to person, it generally progresses in the same five stages: Stage 1 The allergen enters your body through food, air, or touch, and contact the cells in your body. Stage 2 Your immune system creates immunoglobulin E, which is a type of antibody. Stage 3 This antibody enters your gastrointestinal tract or respiratory tract but does not do anything. Stage 4 The next time when you are exposed to the same allergen, the immunoglobulin E treats it as a harmful substance and reacts with it. Stage 5 24 hours after the reaction, the immune system cells move towards the areas that were affected to release certain chemicals to treat it. How to diagnose allergies Your allergies can be diagnosed by a doctor. Before visiting him or her, you must recognize the symptoms of an allergic reaction.
Read More
Anemia – Symptoms, types, and prevention

Anemia – Symptoms, types, and prevention

Anemia is a kind of medical condition in which an adequate amount of oxygen fails to reach one’s body’s tissues owing to the deficiency of red blood cells in their body. When one suffers from this condition, their body feels weak and exhausted all the time. Symptoms There are different kinds of anemia and each of them has a cause of its own. It can have short-term or long-term effects and the disease can be mild or severe in nature. If one sees any symptoms suggesting that point toward anemia, it is essential to consult a doctor immediately. The signs vary from person to person and depend on the cause or their origin. Sometimes, the chronic disease causes anemia and the doctor ends up diagnosing the disease but the fact that one is suffering from anemia does not show up in the test. Sometimes, there are mild symptoms and then, with time the symptoms become more prominent indicating that the disease has penetrated one’s body more deeply. Some of the commonly found symptoms include breathing difficulties, fatigue, pale skin, chest pain, headache, dizziness, hands and feet turning cold, irregular heartbeat, and pain in the chest . Types of anemia Iron deficiency anemia This is the most common kind of anemia, which occurs due to iron deficiency.
Read More