As we all know, it’s important to protect yourself against
insurable risks, and short-term disability is no exception. This is especially
true if you work in a more accident-prone industry than most, but it’s
important to remember that accidents can happen to anyone, anywhere. The question
is, ‘Are you prepared?’
In the event you become disabled, you should be financially
prepared to support your lifestyle for a full six months. If this is not
possible, then short-term disability insurance may be beneficial to you.
What is Short-Term Disability Insurance and How Does It Work?
Short-term disability insurance is a financial benefit that may
pay all or part of your salary, for a specified period of time, if you are
unable to work due to illness or injury and unable to perform your job duties.
Coverage usually starts within one to 14 days after the disabling
event, and can vary from nine weeks to 52 weeks – depending on your coverage.
Additionally, it generally pays 40 to 60 percent of your salary, so you need
What is Long-Term Disability Insurance and How Does It Work?
Long-term disability insurance follows the same concept, but
covers individuals if they get hurt off the job. Once your short-term
disability policy expires, your long-term disability insurance will kick start.
It’s important to read and understand your policy and understand
what type of insurance coverage you are purchasing. Pay attention to terms,
conditions and exclusions, as you would with any contract or policy.
Why is This Relevant
According to Consumer Reports, “Experts say short-term health plans will become more popular now that
the Republican tax plan eliminates the penalty on people without coverage under
the ACA, and President Donald Trump is calling on federal regulators to ease
restrictions a the sale of such plans”.
workers were killed on the job in 2014, which is an average of more than 92 a
week or more than 13 deaths per day,” according to the Occupational Safety
& Health Administration.
Finally, it’s important to note that Louisiana has one of
the highest fatality rates in all 50 states, per AFL-CIO. Louisiana is rated
the fifth most dangerous state to work in, tied with Arkansas, in the United
States. It’s no surprise that with the type of industry and workers this state attracts,
that bracing against health risks – both short and long-term – should be
Who Needs It?
Everyone. Almost 5,000 people were killed on the job in
2014, according to the Occupational Safety & Health Administration These
are staggering numbers! But it’s important to stress the importance of this
insurance for Gen Y workers. This generation has a tendency to under-insure
themselves against risks.
The Social Security Administration predicts that the average
20-year-old faces a 30 percent chance of become disabled by the time they are
65. These are staggering numbers!
What are the Pros/Cons?
As with any insurance product, you are entering a risk-pool
in the event something unfortunate happens to you. It could be a waste of money
if the product is never needed. But then again as with all insurance, you’re
happy to have it if and once it’s needed.