SHORT TERM Disability
Plan purchased by an employer, to cover Short Term Accident or Sickness of employees.
Coverage usually starts 14 days after Accident or start of Sickness (other options are available) and the Benefit period can last up to a maximum of 180 days.
LONG TERM Disability
Plan purchased by employer to cover Long Term accident or sickness of employees.
Starting coverage is either 60, 90 or 180 days after sickness or accident and benefit period of 5 years, 10 years or to age 65. Sometimes even to older ages when required.
INDIVIDUAL DISABILITY PLANS
Plan purchased by an Individual with benefit "waiting period" of 30, 60, 90, 180 or 365 days.
After the waiting period benefit can be for 5 years, 10 years or to age 65. Also for older ages, if income needs are for longer, as with a self employed individual or Corporate Officer.
DISABILITY PLANS ARE USED TO PROTECT A BUSINESS "BUY & SELL AGREEMENT"
DISABILITY PLANS ARE USED TO PROTECT A "KEY PERSON" in a Business
DISABILITY PLANS ARE USED TO PAY FOR "BUSINESS OVERHEAD EXPENSES", when a Key Person is sick or injured. As it says in the name, it pays for fixed business expenses usually for 12 or 24 months after the waiting period which is often only 30 or 60 days.
GO NOW to "THE DISABILITY AWARENESS" WEBSITE and use their charts to REVIEW YOUR OWN PROGRAM.
Important Note: This Duckworth Insurance Services website provides only a simplified description of coverages and should not be mistaken for a statement of contract. Some coverages may not apply in all states. For a complete detail of coverages, limits, conditions, and losses not covered, be sure to read your policy, including all of its endorsements.