When reviewing options for which assets a person should insure, it’s important to note which assets are most important to you. Most working people will agree that their most important asset is their ability to make money; i.e. their body or their mind. If the income stops, most of the other assets will disappear over time as well. Therefore, it’s important to look for insurance policies that will prevent this from happening in the event of an injury or sickness.
We’ll be reviewing what might cause this loss of income and how short-term disability insurance can protect you from losing your assets in the event of a temporary injury or sickness.
What Are the Top Reasons for a Short-Term Disability Insurance Claim?
One of the top reasons for a person filing a disability claim is a pregnancy, at roughly 19% of all short-term disability claims. What might be surprising for some people is that a normal, planned pregnancy is usually covered by a short-term disability policy.
Other claims can stem from back problems, digestive problems, and serious illnesses such as cancer. These injuries and illnesses are among the top reasons for short-term disability claims, however, are nowhere near exhaustive of the reasons that a person may file a claim for benefits.
A short-term disability policy is essentially meant to protect a person from anything that will prevent them from participating in gainful employment for a period of less than two years, or however long the specific policy mentions that benefits will be paid to the insured.
It’s important to read the policy of any insurance contract carefully, because in the case of short-term disability insurance, a disability stemming from an on-the-job injury will not be covered and the insured will not be eligible for benefits. However, this is covered by other plans offered by the employer, including worker’s compensation.
Disclaimer: This information does not constitute financial advice. For specific information for short-term disability policy plans and features, consult your local insurance agent.