Yes, it is common for someone to have a short term disability policy and a separate long term disability policy. However, it may not make sense to have 2 short terms or 2 long terms. Disability insurance plans will coordinate benefits and will not pay over their maximum amounts, usually no more than 70% of one's current income at time of claim.
Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
Yes. Many individuals will set up a short term disability policy as well as a long-term disability policy to cover different types of scenarios (e.g. if you become permanently disabled vs. being temporarily disabled).
Some individuals will have a group DI policy through an employer and supplement it with an individual DI policy if they feel the group DI doesn't provide enough benefits or a very good "definition of disability" (the most important factor with DI coverage) - when buying disability insurance, make sure of (and understand) the definition of disability that's being cited in the program (own occupation, modified, or gainful - this is the most important factor in your disability policy as it will determine if you are eligible for a claim when something happens).
Please note, disability insurance policies coordinate benefits so there's a limit to how much coverage and what kind you can secure (most carriers will keep it to a maximum of 70% of income - the percentage can vary by insurance company).
I hope the information is helpful - please feel free to contact me for help setting up coverage and if you have any other questions. Thanks very much.
You can have more than one disability insurance policy however companies have limits in regards to the total amount of disability insurance, usually a percentage of income, an individual can maintain. Generally you can insure approximately a total 55% of verifiable income. It does not matter if you have one or five policies the total cannot exceed the maximum amount. As your income increases, you may be able to increase you monthly disability benefit as well. If you have an employer paid group policy the total amount of coverage possible may exceed the maximum possible if properly set up but the timing of such coverage is critical.
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Some individuals will have a group DI policy through an employer and supplement it with an individual DI policy if they feel the group DI doesn't provide enough benefits or a very good "definition of disability" (the most important factor with DI coverage) - when buying disability insurance, make sure of (and understand) the definition of disability that's being cited in the program (own occupation, modified, or gainful - this is the most important factor in your disability policy as it will determine if you are eligible for a claim when something happens).
Please note, disability insurance policies coordinate benefits so there's a limit to how much coverage and what kind you can secure (most carriers will keep it to a maximum of 70% of income - the percentage can vary by insurance company).
I hope the information is helpful - please feel free to contact me for help setting up coverage and if you have any other questions. Thanks very much.