The human condition is vulnerable. Death and injury are common, whether from natural or man-made causes. Insurance, especially life insurance, is used to provide coverage to a worker’s family in case of death. However, there are other forms of personal disaster aside from death.
Medical trauma and debilitating injury are just as costly as death is to the economy. (Financially speaking, death before retirement represents a blow to the economy because of the decreased number of productive workers.) Disability insurance covers severe injury and trauma. Disability insurance is used to cover the income of the policyholder at the time of the injury.
Unfortunately, due to the rising costs of malpractice lawsuits, intricate government regulations and other bureaucratic red tape, the policyholder has to jump through an amazing number of hoops before he or she can count on receiving disability benefits. In addition, there is usually a waiting period from a few days to a few weeks before benefits are received.
The good news is that the benefits are tax-free, which means that a policyholder needs to cover only about seventy percent of his or her income, instead of one hundred percent. This is doubly helpful to a policyholder because most disability insurance companies will not cover one hundred percent of a policyholder’s income anyway.
Low Cost Short Term Disability Insurance
In the initial period of your injury or sickness, short term disability insurance can help you in getting your finances together while you are either preparing to go back to work or committing to a treatment regimen, depending on the seriousness of the illness or injury. You can get a good deal on low cost short term disability insurance by seeking a variety of sources of information. Different companies offer different premiums and coverage plans. Shop around and keep looking until you find exactly what you want.