Posted: 17 Aug 2008 05:22 Post Subject:
A long-term disability policy will usually also cover a short-term disability as well as a long-term disability.
Check your policy and see what the waiting period is. There is always a waiting period. This is the time between when you become disabled and when they start crediting your account with disability income funds.
A short-term disability policy typically starts after a short waiting period but only pays you for a short period of time. A long-term disability policy can start paying after a short waiting period or after a long one. If it starts paying after a short waiting period, a short-term disability policy is unnecessary. In this instance the long-term disability policy is also a short-term disability policy.
Please note that if you have a one-month waiting period, don't expect a check after one month. It will take a little over two months before you see a check.
In this scenario, they owe you money starting on the first day of the second month of your disability. They will typically pay you for one month of disability income at a time. This means that they don't owe you a full month's check until you have been disabled for two months. Add in some processing time and mailing time and you shouldn't expect a check for 75 days or so after your disability starts.
Posted: 18 Aug 2008 07:37 Post Subject:
The disability insurance will replace a portion of your income when you'll suffer disability. Hence, its of utmost importance to purchase at least one form of disability plan to keep your self covered against the effects of disability.
The short term and the long term disability plan normally differ in terms of the waiting period that the insured has to wait before start getting the benefits.
The sort term plan may required the policy holder to wait for a time period of 14 days before the benefits start, whereas, the waiting period for the long term disability may vary between 30 days to one year, though the most common is ninety days waiting period.
The short term plan may even apply two different waiting periods for accidents and illnesses. For accidents, it may start paying the benefits sooner than illness.
However, if you can afford you can buy both the short term and long term disability plan, though the long term disability policy should remain your primary choice.
Posted: 18 Aug 2008 09:21 Post Subject:
I'd have preferred a long term disability plan over a short term one, since most of the disabilities may last for a longer period of time, which is enough to eat-away the savings of the disabled.
The requirement for short term disability benefits may die-away even before the insurance starts paying for it, also the insured may survive the expenses and loss of income even without an insurance plan.
IMO when you already have the long term plan, you may not require to invest for the short term disability policy. However, re-read the policy document to see whether or not it covers you for the short phase of disability. Also, you may wish to discuss with the insurance agent about your requirements.
Posted: 18 Aug 2008 12:27 Post Subject:
renditioner, if you are truly interested in buying another coverage, I;d rather suggest that you purchase a critical illness policy.
There are several health issues that may impair your ability to perform daily works, which are not normally covered under the disability plans. Hence, purchasing a protection for these events may help you stay covered in a better way.
However, its good to know that you have taken enough care to purchase long term disability plan for yourself, and enquiring about further coverage :)
Posted: 22 Aug 2008 08:00 Post Subject:
Would like to mention over here that a disability policy would never show up the same kinda benefits as the Critical illness policies would do. Hence if you're scared of the possibilities of a critical illness then its better you go for a critical illness plan. I say this because For any critical illness spotted your disability insurance would only cover you to the extent you got affected by it. The reimbursement would be on the basis of other factors eg. wages earned by you for a considerable period of time prior to your disability or the period of disability (Never will it reimburse the full policy-value).
On the other hand, a critical illness policy would reimburse you for the entire policy value whenever any of the listed illnesses get spotted.