As we all know, it’s important to protect yourself againstinsurable risks, and short-term disability is no exception. This is especiallytrue if you work in a more accident-prone industry than most, but it’simportant to remember that accidents can happen to anyone, anywhere. The questionis, ‘Are you prepared?’In the event you become disabled, you should be financiallyprepared to support your lifestyle for a full six months. If this is notpossible, 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 maypay all or part of your salary, for a specified period of time, if you areunable to work due to illness or injury and unable to perform your job duties.Coverage usually starts within one to 14 days after the disablingevent, 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, butcovers individuals if they get hurt off the job. Once your short-termdisability policy expires, your long-term disability insurance will kick start.It’s important to read and understand your policy and understandwhat 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 RelevantAccording to Consumer Reports, “Experts say short-term health plans will become more popular now thatthe Republican tax plan eliminates the penalty on people without coverage underthe ACA, and President Donald Trump is calling on federal regulators to easerestrictions a the sale of such plans”. Additionally, “4,821workers were killed on the job in 2014, which is an average of more than 92 aweek or more than 13 deaths per day,” according to the Occupational Safety& Health Administration. Finally, it’s important to note that Louisiana has one ofthe highest fatality rates in all 50 states, per AFL-CIO.
Louisiana is ratedthe fifth most dangerous state to work in, tied with Arkansas, in the UnitedStates. 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 beconsidered. Who Needs It?Everyone. Almost 5,000 people were killed on the job in2014, according to the Occupational Safety & Health Administration Theseare staggering numbers! But it’s important to stress the importance of thisinsurance for Gen Y workers. This generation has a tendency to no properlyinsure themselves against risks. The Social Security Administration predicts that the average20-year-old faces a 30 percent chance of become disabled by the time they are65. These are staggering numbers!What are the Pros/Cons?As with any insurance product, you are entering a risk-poolin the event something unfortunate happens to you.
It could be a waste of moneyif the product is never needed. But then again as with all insurance, you’rehappy to have it if and once it’s needed.