What would you do if your paycheck stopped because you were sick or injured and could not go to work?

Your Employer may offer two types of Disability Income Insurance: Short Term Disability (STD) and Long Term Disability (LTD).

The odds of becoming disabled during our working careers are higher than the odds of our house burning down. But certainly most of us buy Homeowner’s insurance. Most of us also buy Auto insurance, Health insurance and Life insurance. Many people are now even buying Pet insurance. But many of us never even think about insuring our paychecks. Disability Income insurance can insure that famous goose so those golden eggs just keep on coming. Components if Disability Income insurance policies:

1. Short Term Disability: STD is usually issued with a with an income benefit up to a specified percentage (typically between 60% and 70%) of your income. Benefits may begin as early as the first day of disability caused by an accident, or the eighth day of disability caused by an illness. Benefits would then continue during your disability for up to either 26 weeks or 52 weeks depending on the plan which has been purchased by your Employer.
2. Long Term Disability: LTD is usually issued with an income benefit up to a specified percentage of your income. Some Employers purchase LTD to supplement their STD coverage. That is, the LTD is arranged so that benefits will begin when the benefits cease under the STD plan. Other Employers offer only the LTD plan. Benefits may begin after an elimination period (waiting period) of 26 weeks or 52 weeks of disability. Benefits would continue for a period of years based on the plan your Employer has purchased.