If you have an accident or injury, your health insurance typically helps cover the medical bills. But what if your injury results in a total disability that prevents you from working and you need help paying the mortgage, childcare costs and other daily living expenses? That's where disability insurance comes in. It's not the same as Social Security disability coverage, which has eligibility requirements and a rigorous application process. Anyone can choose to get disability insurance to help prepare for what-ifs.
Here are the different disability insurance policies and options:
Disability Insurance Policy Options
There are two types of policies available:
- Short-term disability helps make up a large portion of lost income if a total disability requires you to be absent from your job for six months or less. It usually kicks in after all other options, such as paid time off or sick leave, are exhausted.
- Long-term disability will pay out a portion of your salary (typically 50 to 70 percent at the time you purchase the policy) for a set period, from as few as five years to up until you reach age 65. As part of this policy, you'll want to consider additional options such as:
- A cost of living adjustment to help the monthly payouts keep pace with inflation
- Residual or partial disability riders that continue to pay out in reduced amounts if you're able to work part-time
Disability Insurance from State Farm
Make a plan for the unexpected: Talk to your State Farm agent about the following disability products:
- Disability Income Insurance: A disability policy that helps cover your daily living expenses
- Mortgage Disability Income Insurance: A disability policy that will make payments toward your mortgage obligation when you can't because of a total disability
- Individual Credit Disability Insurance: A disability policy that will make payments toward a loan that you're unable to keep up with due to loss of income because of a total disability