Disability Insurance

Disability Insurance is a type of insurance where oncome is provided to the person who is not able to work due to an injury or mishap. This type of insurance is provided to the people who cannot earn for themselves due to disability and have no source of income.

The level of disability is different according to various organisations and disability insurance organisation, therefore the qualification for the benefit also is decided based on the level of the disability. With this method, the disable person is able to earn money and is able to live with basic insurance provided to him or her. Since they have to manage the daily expenses and medical bills, the higher the level of disability provides higher benefits and income to the person.

How does Disability Insurance work?

Disability Insurance is divided into two types of insurance, i.e. short term and long term. Short term disability refers to the compensation paid for a short period of time where the worker or the employee was not able to work due to an injury or mishap. This timeline can be further defined as 3 to 6 months where the employee is being paid a portion of his salary.

Long term disability refers to the insurance policy where the employee or the worker is being paid a portion of his or her salary post the injury. The timeline for long term disability is more than 6 months.

In order to receive the benefits of this type of insurance and employee must be disabled to be eligible for the insurance. There are hospitals and medical clinics that help in determining the level of disability and helps in informing the condition of the worker in order to determine who long the worker is supposed to be paid for the disability insurance.

It is not necessary that the person who got injured while working in an organisation can only apply for the disability insurance as there are many other factors which can cause accidents which have eventually led to the disability of a person. Government bodies and private organisations providing disability insurance are strict against the rules and the terms & conditions of the insurance policy therefore faking disability can lead up to 10000 dollars fine along with other punishments. Therefore, the process of disability insurance is checked thoroughly and multiple times before providing benefits to the worker.