Short Term Disability and Long Term Disability Insurance
Disability insurance protects against loss of income when an individual is unable to work due to illness or injury. Disability insurance pays a percentage of the lost income, which is paid out each month like a traditional paycheck. Disability insurance covers disability caused by accidents and illness.
There are two types of disability insurance: long term disability and short term disability. Short term disability insurance usually pays benefits lasting just a few months. Whereas long term disability insurance lasts much longer often years or decades. Most people find long term disability insurance a much better option.
Accident insurance pays a cash benefit due to an injury caused by accidents. The accident insurance is different from disability insurance in that it pays the benefits even if the injury doesn’t keep an individual out of work.
Accident Insurance can also be used to help pay down a health insurance deductible, copay or coinsurance.