Disability insurance provides a portion of your income in the event that you are disabled and cannot work. Unlike workers’ compensation which provides benefits such as, partial wage replacement if you get hurt on the clock. Disability insurance provides partial wage replacement if you become ill or disabled away from work, and can’t work.


For the most part, disability insurance will not replace all of someone’s income. Instead, disability insurance provides wage replacement benefits that cover, on average, up to 60% of employee earnings. Those payments usually go up to a cap, or a maximum monthly payout. Although that’s not ideal, receiving up to 60% of wages is still better than 0% and having that income stream can be very important for you and your family.


There are two types of disability insurance: short term and long term. Short-term disability typically pays out a portion of your income from 9 to 52 weeks depending on the plan. Short-term disability benefits generally kick in after a waiting, or “elimination” period, which is usually set from seven to 14 days.


Long-term disability picks up where short-term disability leaves off. Long-term disability insurance usually provides about 50-60% of your base wages. Long-term disability benefits are paid out for the number of years indicated in the plan document. There are long-term disability plans that pay out partial wage replacement benefits until a certain age, such as 65 years old.


We can help you apply for disability insurance whether it’s short- or long-term plan. Cosmo Insurance offers all kinds of benefit packages at competitive rates. Call or fill out a quote online for free. Cosmo is here to help!


Cosmo Insurance Agency is an independent insurance agency serving surrounding communities in New Jersey. Cosmo keeps its promise to assure an efficient and creative approach to the services we offer. Each of our clients experience a personalized and long-term relationship with us. Our New Jersey based team of health brokers guides our clients in helping them choose the most cost-effective options. By incorporating the latest in technology-based tools and laws on healthcare, employee benefits, life insurance and finance, we keep our clients up-to-date with the plans that encompass all of their needs, whether it is individual or group insurance. 





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