What Does Disability Insurance Cover?

Disability insurance is a type of coverage that replaces part of a person’s monthly income in the event he or she can no longer work due to injury or illness. The purpose of disability insurance coverage is to provide peace of mind and financial security for the insured and their loved ones when he or she can no longer earn a paycheck.

Types of Insurance

Because most people have disability insurance coverage through their employer’s group policy, there are typically two types of disability insurance: short-term and long-term. Short-term disability insurance usually pays benefits for a time period of between three and six months maximum. These benefits can be paid weekly, biweekly, or monthly. Long-term disability benefits, on the other hand, are typically paid monthly. There is usually a period during which you have to wait before benefit payments start -- known as an elimination period. The elimination period of a long-term disability policy can range between three and six months. You can receive long-term disability benefits through age 65, 67, or your regular Social Security retirement age although some conditions are only payable for 24 months.

How it Works

A disability insurance contract is an agreement between the policyholder and the insurance company. Most people have their disability insurance coverage through their employer. Some people, however, get disability coverage through an insurance agent. In either scenario, in exchange for premiums paid the insurance company agrees to pay a monthly benefit -- usually a percentage of your prior income -- if you become disabled.

Disability insurance contracts include:

  • The premium amount;
  • The definition of disability;
  • The benefit (flat amount or percentage of salary); and
  • The length of the term.

Help from an Attorney with Expertise in Disability Insurance

Disability insurance law is complicated. If your claim for long-term disability benefits was denied or being delayed by an insurance company, it is important to get help from a lawyer with expertise in disability law.

Why Us?

Because federal law applies to most disability insurance claims, we do not have to be located in your state to help.

Dabdoub Law Firm represents clients nationwide with:

Call to speak with a disability insurance attorney. No fees are costs unless clients are paid.