How it Works

• When you become injured or sick and cannot work because of these conditions, the first step is to file a claim with the disability insurer. The claim is paperwork submitted with supporting documentation from your doctor and employer, if the coverage is through an employer-sponsored plan. After review of your claim, the insurance company will pay weekly or monthly payments, usually a percentage of your salary or an established dollar amount. Each policy stipulates the payment frequency and amount.
  
  

Short-Term Disability Insurance

• Short-term disability insurance is often part of an employee benefit package. This policy covers a percentage of the employee's salary when the employee is out of work for a short period. Typically, short-term disability coverage ranges between 13 weeks to 52 weeks. This plan is accessible when employees take off work for maternity leave, surgery, cancer treatments, rehabilitation or back pain, among other circumstances. Employers may require employees use up any paid time off work before using their short-term disability policy.
  
  

Long-Term Disability Insurance

• When an injury or illness renders people unable to work for a long period, a long-term disability insurance policy may supplement their income after the short-term policy runs out. If employees are unable to return to work due to their disability, the policy may provide payments until they are able to return or until age 65, depending on the policy. Most long-term disability policies pay 50 percent to 60 percent of a salary. Employers may offer their employees the opportunity to "buy up" to a higher percentage of their salary.
  
  

Government-Sponsored Disability Programs

• Federally, the Social Security Administration provides financial assistance to those with disabilities. If you have paid Social Security taxes in the past, Social Security disability insurance pays you and possibly your dependents if you become disabled. Social Security also provides supplemental security income to disabled individuals, based on certain criteria. Additionally, a few states offer state-sponsored disability benefits. Federal disability programs for veterans, federal civil workers and coal miners are also available.