What Is Disability Insurance on My Paycheck?
The benefit period is the length of time the insurance company is obligated to pay benefits to you in the event that you become disabled.
What does it mean to have disability insurance?
Disability insurance insures your income against the possibility that you’ll become so disabled that you can’t work anymore. When you have disability insurance and suffer a disability that forces you to leave your job, the disability insurance company pays you a monthly benefit for a predefined number of years or until you recover.
How much does a short term disability policy cost?
The cost can vary based on your age and your level of benefits, but some estimates state that you should expect to pay between one and three percent of your annual gross income. So, if you’re earning a $50,000 salary, purchasing your own short-term disability policy could cost between $500 and $1,500 each year.
