Disability insurance is the only insurance coverage that protects your income. A disability insurance policy can replace part of your paycheck if you became unable to work because of an illness or injury.
Although many of us our covered by federally-funded Social Security Disability Insurance (SSDI or SSD) and Supplemental Security Income (SSI), the application process can be complicated and not everyone gets approved. If you’re approved, the amount of SSDI or SSI you receive every month is based on how long you’ve worked and how much you’ve contributed to Social Security – there are many factors to consider and calculations can get complicated.
But wait, your work benefit package includes disability insurance so you should be covered, right? Employee-paid disability insurance is a great perk – as long as you’re employed with the same company. Accidents and injuries that prevent you from working can happen at any time, including if you’re between jobs or waiting for benefits at your new job to kick in.