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What is disability insurance?

Disability insurance protects the insured person from a loss of income from a disability as  a result of illness or an accident.

What are the kinds of disability insurance?

There are essentially two kinds of disability insurance

bulletShort term disability insurance
bulletLong term disability insurance

Short term disability insurance

Short term disability insurance protects you from a loss of income for a short period of time due to illness or an accident. A number of employers do provide for short term disability insurance. However, you should read the fine print when you study short term disability insurance- the short term disability insurance period can be from 1-26 weeks.

Long term disability insurance

Long term disability insurance refers to insurance that protects you from a loss of income for a longer period of time, typically more than 26 weeks. Generally, most employers do not offer long term disability benefits. Also, long term disability insurance is usually not covered by any social security policy.

Again,it pays to read the fine print while choosing a long term disability policy-long term disability insurance may be restricted to cover only a few major illnesses and accident damages.


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Last modified: August 31, 2005