Disability Insurance covers most things that would cause someone to not be able to perform the duties of their job. This can be anything from a broken bone to having a baby, when talking about Short Term Disability, or from having cancer to going blind, when talking about Long Term Disability. Each policy has its own criteria so you should be familiar with the terms of the policy you are purchasing. Some causes of disability that are excluded for most policies are acts of war, commission of a crime, driving while intoxicated, and suicide attempt.
Long term disability insurance covers health conditions that cause the insured person to be unable to work for an extended period of time. The most common cause of collecting on disability benefits in 2010 was musculoskeletal and connective tissue disorders (neck, back, ankle, foot, joint, muscle, and/or tendon disorders). Cancer was 2nd. Injuries and accidents came in at #3, cardiovascular/circulatory disease was #4, and mental disorders were the 5th most common reason for collection of long term disability benefits in 2010.
Disability insurance is designed to replace a portion of your income during the time you are unable to work because of a covered accident or illness. Each policy has different exclusions for which medical conditions are covered.
Many policies will not cover on-the-job accidents as this is addressed by workers compensation. Preexisting medical conditions may not be covered if the disability begins within the first twelve months of the policy effective date. Elective medical procedures may also be excluded. Mental illnesses are excluded by most policies but not all.
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Many policies will not cover on-the-job accidents as this is addressed by workers compensation. Preexisting medical conditions may not be covered if the disability begins within the first twelve months of the policy effective date. Elective medical procedures may also be excluded. Mental illnesses are excluded by most policies but not all.
Check your policy language for specifics.