How Does Long-term Disability Work For Health Insurance?

By Cathy Wilson Posted in Health Insurance News



Getting injured and being put out of work for an extended period of time is a scenario that every responsible person should be prepared for. You need to be able to provide for you and your family even though you are no longer receiving paychecks. This is what disability health insurance policies are for. There are two types of disability health insurance; short term and long term. Your short-term disability insurance policy will provide you with coverage for the first three to six months that you are out of work. If you have a more serious disability and are unable to work for longer than your short-term policy is in effect then your long-term policy will kick in. A long-term disability health insurance plan will provide coverage for anywhere from two years to the time you retire at age 65. The length of the long-term coverage depends on the specific policy that you purchase.

Disability Plans Can Be Purchased Through Employers Or Individually

Typically both short term and long-term disability health insurance is a benefit provided by employers. If however, your employer does not offer this benefit you can purchase an individual disability health plan from a health insurance provider. If you are provided long-term disability insurance from your employer they may pay the annual premium, but if you purchase an individual policy you will be responsible for the premiums.

Disability Insurance Will Not Cover Your Entire Salary

When you become disabled and make a claim to your insurance company they will first verify that you are actually unable to work and then begin paying out your benefits. A typical disability insurance plan will pay between 50 and 65 percent of your salary. Better plans with higher premiums will pay out a higher percentage of your salary and provide coverage for a longer period. If you pay your own insurance premiums with money that is already taxed then your insurance benefits will not be taxable. However, if your employer pays your premiums they will most likely be taxable because the company pays with pre-taxed money.

Related posts:

  1. How Does Short Term Disability Insurance Work For Health Insurance?
  2. What Does Disability Insurance For Health Care Entail?
  3. What Are Low Cost Health Insurance Options for The Self-Employed?
  4. How Does Temporary Medical Health Insurance Coverage Work?
  5. What Happens To Your Health Insurance If You Get Laid Off?






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