Many people assume having health insurance means they have disability insurance.
While being disabled might affect your health, it is not covered by a typical health insurance policy. Some employers offer disability insurance options, but others may not have those available.
Here are some frequently asked questions about disability insurance coverage.
What is Disability Insurance?
Disability insurance is a type of personal insurance which helps replace some of your income in the event you are injured or cannot work due to a disability.
There are two different types of disability insurance:
- long-term disability
- short-term disability
Short-term disability covers some or all of your income for a certain amount of time, while long-term disability is used to cover some or all of your income after short-term disability insurance coverage is depleted.
What Can it Cover?
Disability insurance can cover a multitude of ailments and health conditions.
From broken bones to having a stroke, if it affects your ability to do your job, it is possible disability insurance will cover it.
However, it is important to know different jobs have different limits on what is actually necessary to complete your job. For example, if you break your leg, you can not do a job which requires you to complete intense labor and hauling.
Yet, breaking your leg does not mean you can’t work a job which requires you only to use a computer or sit at a desk. Because of this, disability insurance coverage is very conditional.
What Does it Not Cover?
There are many situations where disability insurance does not cover you.
One of these situations is the disability of a family member. If you are suddenly the caregiver of a family member who has recently become disabled, you might be eligible for coverage with the Family Medical Leave Act or FMLA.
Other times, disability insurance might not cover are disabilities which do not limit you from being able to do your job, being pregnant and having a health concern which would limit you from being able to come into the office but would not limit you from being able to work from home.
For additional restrictions on your disability insurance coverage, consult your disability insurance provider.
Are There Policy Limits?
Policy limits are typically based on the amount of coverage provided.
Whether it is the percentage of income which will be replaced or the amount of time your income is covered, there are different policy limits which are placed on disability insurance coverage. However, these policy limits vary based on your disability insurance provider.