Disability Income Insurance (DI) is protection against an illness or injury that may result in loss of income for a period of time. According to a survey conducted by LIFE Happens, half of working Americans couldn’t make it a month without income before financial difficulties would set in, and almost one in four would have problems immediately. It’s likely that you have clients who fall into this category and would benefit from the paycheck protection that DI offers.
Short-term disability is designed to protect both the employee and the employer if the worker can no longer do their job as a result of illness or injury. When a qualifying event happens, an employee can file a claim with a disability insurance company to receive the amount of income specified in the policy benefits.
Long-term disability is an insurance plan that often works in tandem with short-term disability to provide income for long-term illnesses and injuries. Once short-term disability benefits are exhausted, a long-term disability policy continues to provide the employee with some income until they can return to work.