Private Disability Insurance: Frequently Asked Questions

Whether you're a doctor, a contractor, or work in a restaurant you are at risk of being injured at work. If this occurs, workman's compensation benefits won't cover all your bills. Qualifying for Social Security Disability Insurance, or SSDI, is difficult and the process can take months. Private disability insurance can help you make ends meet until you are able to work again.

Here are a few frequently asked questions about private disability insurance.

How Do Private Disability Insurance and Social Security Disability Insurance Differ?

The key difference between private disability insurance and SSDI is the provider and qualifications to receive the insurance. SSDI is offered by the federal government and there are several conditions a claimant must meet before they qualify. The claimant must have worked for a certain number of years and they must be considered disabled by the Social Security Administration.

Private disability insurance is purchased directly from an insurance provider. There are fewer restrictions on who can receive private disability insurance and if the claimant becomes sick or injured, the insurance provider will have their own definition of a disability.

To qualify for SSDI benefits, the claimant must have a total disability, which means they are unable to work in any industry. Private disability insurance offers coverage for total and partial disability. Partial disability claims occur when the worker is unable to fulfill the total responsibilities of their last place of employment.

What Are the Different Types of Private Disability Insurance?

There are two main types of private disability insurance: long-term disability insurance and short-term disability insurance. Both these policy types pay out a large portion of the claimant's salary. The main difference is the length of time each policy is paid out. Typically, short-term disability insurance is active for a few months. There is a shorter waiting period before the claimant receives their benefits.

Long-term disability insurance is awarded to a claimant for several months or years. There is a longer waiting period before the benefits are paid out, but it is typically only a few weeks. Depending on the claimant's policy, they could receive long-term disability insurance benefits for several years, or until they reach retirement age.

If you're injured at your job, you can't always rely on your employer's benefits to pay for your everyday needs, or that you will qualify for Social Security Disability benefits. Purchasing private disability insurance can help you pay the bills and care for your family while you heal and prepare to go back to work. Contact a firm, like Iler and Iler, for more help.