If you are unable to work for a short period of time due to a disability, short-term disability insurance will replace your income during your recovery period.
How exactly does this work?
-Short term disability insurance covers 80% of your income while you are unable to work.
-Elimination period – the amount of time before you will start receiving benefits. The elimination period for short-term disability insurance policies is usually under 14 days.
-Check your policy to see if there are any exclusions of what isn’t covered.
-You will receive benefits for as long as you meet your policy’s definition of disabled.
-If you are paying the premiums with pre-tax money, your policy will be taxable. But, if the premiums are paid with post-tax dollars, then the policy is no longer taxable.
Factors that come into cost consideration for short-term disability plans:
Coverage amount, benefit period, and elimination period
Age, gender, and health
If you become disabled, God forbid, standard-unemployment benefits will likely not provide what it takes to replace your income. Disability insurance gives you the ultimate safeguard. Cosmo Insurance Agency in New Jersey will shop for the ideal plan, from the superior carrier, based on your individual situation.
Short term disability insurance provides you with most of your previous income level for up to two years. Long term disability insurance provides this coverage for several years, up to retirement, depending on the plan you choose.
Learn about the wide array of protections you available through various disability insurance plans, including guaranteed renewal, cost of living increases, terminating premium payments after becoming disabled, and more.
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