Short Term Disability Insurance Essay

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Long and Short Term Disability Insurance
A disability protection is an insurance policy that insures part of the individual’s lost earnings when that person is unable to work due to injury or illness (Chittenden, et.al, 2015). Some disability insurance policies cover the employees for a short span, such as months, while others provide a stable compensation for several years (long-term). For one to decide on whether to get an extended or short-term insurance cover depends on the individual’s expectations, needs, or budget.
Advantages and Disadvantages of short-term Disability Insurance
Short-term disability provides compensation to workers when they cannot work due to sickness or injury. In particular, one can receive almost 65% of their income, which can be a great supplement to individual’s emergency saving when unable to work (Cummins, et.al., 2013). Again, the policy tends to issue the benefits immediately after the policy holder become disabled or not later than first or two months, where they even pay the disabled almost 100% of the workers’ pay for the first two months. Finally, the policy is affordable, mostly when offered as a group plan through individual’s work.
The demerits for short-term disability is that there are caps on people’s coverage. That is, the policy holder can only receive payment up …show more content…

Nevertheless, some companies provide benefits to the owner of the policy up to the age of 75 or more. The primary merit of long-term disability insurance is the peace of mind, which comes when the policy holder knows that he/she will receive benefits of up to 70% of his salary for all the period the disability lasts (Cummins, et.al., 2013). Another advantage is that the policy allows more options, like the hospital stays coverage, and adding more supplemental insurance to raise the monthly

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