Understanding Supplemental Pay When Injured or Ill

disability insurance

For injuries sustained on the job, a worker’s compensation policy provides some financial relief for employees. However, this doesn’t cover any wages lost during the time of healing or while waiting on a doctor’s release. It also only covers accidents that occur at work. When injuries occur while you are off the clock, disability insurance is the answer.

What Disability Does

According to the information found at https://www.insuremyworkcomp.com, disability coverage is like having insurance for a paycheck. When you can’t work, due to an injury or medical condition, the insurance policy provided a portion of your prior income to help meet basic needs. The funds are released and calculated according to your wages and are paid out for a limited period of time as defined by your company policy.

The most common terms you need to understand include:

  • Premium- the amount paid each month for the policy
  • Benefit amount- how much is received each month
  • Benefit period- how long you will receive a payment
  • Elimination period- how long you wait before receiving a check
  • Definition of disability- what qualifies you for earning disability benefits
  • Riders- customizing options for a policy that can raise the cost of the policy

Your situation will determine what disability benefits you receive, as there are different types. These are long-term, short-term, Social Security, and state disability benefits.

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