For example, if you have three months of paid sick leave, you wouldn't need coverage until the beginning of the fourth month of your disability. Any policy worth considering will be guaranteed renewable, at no increase in premium, until you reach age 65. It's also important to understand the distinction between disability and workers' compensation insurance. While both provide benefits if you are disabled and can't work, workers' compensation covers only those injuries and illnesses that are work-related, meaning that they occurred at work or as a result of employment. Other disability plans cover illnesses and injuries that may happen anytime or anywhere.
Many people already receive disability coverage through their employers' group policies.
Many teaching and research professionals, for example, are covered by TIAA's group long-term disability plans. If you pay the premiums of your disability income coverage, you receive the benefits tax free. If your company pays the premiums, benefits are taxable. Short-term policies, for the most part, are basic sickness and accident plans. These policies assure continuous income for those unable to work because of temporary illness or injury.