Taylor Benefits is an independent group insurance and benefit agent that crafts customized insurance solutions for businesses of all types and sizes in Texas.
Disability insurance offers a form of income replacement to employees that are unable to do the tasks required of their job due to injury or illness. There are two types of disability insurance that businesses can carry: short-term and long-term. In the sections below, we’ll briefly explain the details and differences between the two.
Short-term disability insurance – Short-term disability insurance is for the initial portion of work that is missed by an employee that qualifies for disability. These types of policies generally offer six months of coverage, while some extend to a full year. Since there is often a waiting period before long-term disability insurance kicks in, a policy that includes both is more likely to be viewed as an attractive benefit to workers.
Long-term disability insurance – Long-term disability insurance provides financial compensation for employees that are going to miss significant time from work. Long-term disability is the more common of the two types, but does involve a waiting period that can delay payment. Once they take effect, long-term plans can extend for several years, or even until retirement age in some cases.
To gain a better understanding of how disability claims are filed and reviewed, view this resource from the Social Security Disability Resource Center.
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