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Why Disability Income Protection Insurance?
At the turn of the 20th century, thirty-three million
Americans were classified as
severely disabled.2
Three out of every 10 workers between the ages of 25 and 65 will experience an
accident or illness that keeps them out of work for three months or longer.3
Nearly 60% of injuries happen off the job, which means employees
are not covered by worker's compensation benefits.
- Consumer Federation of America study conducted
by Princeton Survey Research Associates, February 20, 2001.
- "Americans with Disabilities: 1997," U.S.
Bureau of the Census, Current Population Reports, pages 70-73, February
2001.
- 1985 Commissioners’ Group Disability Table, Society
of America.
Disability Income Insurance
Disability income protection
insurance provides financial benefits when you are unable to work due to a
disability caused by a covered illness or injury, regardless of whether
or not that illness or injury is work-related.
If an injury or illness prevents you from working, this plan
will provide you with an income. Disability income insurance benefits
are usually 60% of your income at the time of disability. When shopping
for disability income insurance, read the fine print!
Some policies only pay benefits if someone is unable to perform the
duties of their occupation. Others pay only if the person cannot work
at any job.
What are the types of disability insurance?
There are three types of disability policies: Short-Term Disability
(STD), Long-Term Disability (LTD),
and New York State Disability (DBL):
Short-Term Disability policies
(STD)-
STD Policies have a waiting period of 0 to 14 days with a maximum benefit
period no longer than two years.
Long-Term Disability policies (LTD)-
LTD Policies have a waiting period of several weeks to several months with
a maximum benefit period ranging from a few years to the rest of your life.
New York State Disability Insurance (DBL)-
In New York State if you have employees, this benefit is mandated by New York State, with
almost no exceptions. All insurance companies provide the same core
benefit. A 7-day wait for either sickness or accident, 50% of gross
weekly earnings, maximum weekly benefit of $170.00 and a maximum benefit
period of 26 weeks. For fewer than 50 employees there is a rate for
males
and a rate for females. Over 50 employees the rate will be determined
by experience (rates determined by prior year loses) or based on
payroll. Whether a community rated plan (under 50 lives) or experience
rated (50 plus) you look for the lowest priced carrier. This is a
benefit
that is a 24 hour a day, seven days a week, non-work related benefit.
This coverage which is provided by the Employer, is usually supplemented
with a short term or
long term disability insurance.
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