Disability income insurance will cover you if you have a physical injury, psychological disorder or an illness or a disability. You could have your policy from your employer and they could be for either short-term or long-term disability and it can be group insurance. There are individual or private plans you can purchase on your own.

Policies Cover Short- or Long-Term Insurance

Each policy terms and conditions vary. That is why it is important to read the fine print and discuss with the insurance agent before you sign up for it. The coverage available to you, short-term or long-term, will vary but each policy has the details, such as:

• The amount you receive and it is usually 60% to 85% of income.
• The maximum amount that you could receive per month.
• What a “disability” actually is.
• You will know what limitations and any exclusions are that prevent you getting benefits and if you do, how long you will receive the benefits.
• Extra coverage costs

Short-Term Disability Insurance

If you are employed, short-term disability insurance will pick up where your sick leave quits. So while you are temporarily out of work, injured or sick you can receive short-term disability for six to eight months, with some benefits lasting as long as a year.

You may have to depend on employment insurance, if you are not provided short-term disability benefits through your employer. Your short-term benefits are just a percentage of what you regularly make at work. It will cover the basic costs while you recover.

Long-Term Disability Insurance

You may have suffered an injury that prevents you from returning to work and when short-term benefits or employee insurance is over, your long-term disability coverage will begin. These benefits could last for about two years, depending on the policy, it can cover income, medical treatments and rehabilitation. Depending on the policy, benefits can cover income replacement as well as coverage for medical treatment and rehabilitation. If you cannot return to any job after two years you may continue the long-term disability insurance until age 65. If you begin to receive other disability income, there will be a reduction in your long-term benefits. If you are able to return to any job you will not qualify for long-term disability insurance. Thus, talk with your injury lawyer in Mississauga about it.

Extra Coverage

You can have a policy that gives you extra coverage while you are disabled. These policies help protect your benefits from inflation or a cost of living adjustment, even a policy with a lifetime benefit that pays monthly, if you are disabled after you are 65 years of age. The long-term disability amount is usually more than the lifetime benefit policy.