Disability insurance is a type of medical policy that provides health benefits to employees who have a physical inability that temporarily prevents them from working at their full capacity.
A person who sprains a muscle in his or her lower back, or sprains an ankle while exercising with a friend on a random weekend would qualify for disability.
A waiter or waitress who accidentally cut his or her finger while chopping tomatoes or green peppers for dinner one night will probably need stitches and a cast, though he or she would be able to return to work in some employed capacity.
A person who fell on a slippery sidewalk and received minor bruising may need a small period of time away from work to let the bruising subside, the ankle heal, or the lower back to recover before returning to work.
These injuries, however, would qualify an individual for short-term disability, one type of disability insurance.
Another type of disability insurance is called long-term disability, and it is designed for those whose injuries are far more extensive than muscle sprains or aches.
A person who would qualify for long-term disability is a construction worker who suffers a massive head injury (hit by a piece of lumber) while talking on a construction site, or a worker whose back stiffens while he tries to bend down and cement bricks to create a building foundation.
A waiter or waitress may end up dropping an extremely hot plate on his or her foot and may have some sprained toes because of it. While the sprained toes may need little to no surgery, the impact of the dropped pan could cause the waiter or waitress to spend a few months out of work.
Income protection insurance is formerly known as permanent health insurance and can pay up to seventy percent of your income in case you must be out of work for a long period of time.
Income protection insurance is insurance for long-term disability situations, so it is similar to long-term disability but different from short-term disability insurance.
The construction worker whose back froze while lifting heavy equipment can qualify for income protection insurance. A high school physical education teacher who faced a car accident and temporary paralysis on one side of his or her body may find themselves in the unfortunate position of requesting income protection insurance.
The length of time for each patient under income insurance is different; depending on the medical prognosis, you could be injured for six months or a year or two. While doctors certainly know what they are doing, there are times when the injury prognosis could go either way.
While you do not want to pay a lot for your insurance, you may need to—if you think the time away from work could be extensive.
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