When a person sustains a disabling injury, that person may have to face a number of financial difficulties. While it is true that the disabled person can obtain benefits from the New Jersey’s workers’ compensation program or from Social Security Disability benefits for injuries, the fact remains that the money that the person receives from those programs is often not enough to pay for the various expenses that a disabled person has to incur, especially because that person can no longer work full time as a result of the disability.
Life is unpredictable and a person can become injured at any time. Therefore, in order for the person to be protected from a situation like that, the person may choose to buy private disability insurance, which can either be for short-term or for long-term disabilities. It is important to remember that short-term disability insurance coverage is valid for two years while long-term disability insurance coverage is valid for the rest of the victim’s life.
Private disability insurance policies consider an individual to be disabled if that individual is either unable to perform the duties that are required for any job or if that individual is unable to perform the duties of the person’s chosen occupation. It is also important to remember that most private disability insurance policies have a waiting period after the injury before the benefits begins. Once the benefits begin, they usually continue until the age of 65-years-old or older, if the person paid for that.
While selecting a private disability insurance policy, one of the most important points to clarify from the provider is whether the benefits from that policy will be affected by other disability benefits, such as SSD benefits or workers’ compensation. The person should also clarify if the benefits from the policy will be adjusted for inflation. Additionally, the individual should clarify if the policy will continue to contribute to the pension plan so that disability benefits continue after retirement.
Source: USA.gov, “Life and Disability Insurance,” May 11, 2015