• Disability can strike at any time. Disability insurance can help.man in wheelchair image by jimcox40 from Fotolia.com
  
  There for the grace of God go I. That's a thought that many able-bodied people have upon seeing someone with a disability. The reality is, through accident or illness, that able-bodied person could become disabled themselves. Disability insurance can help pay bills when a worker cannot earn a living due to temporary or permanent incapacity.
  
  

What Is Social Security Disability?

• According to the Social Security website, American workers have a 3 in 10 chance of becoming disabled before their retirement years. Those who pay into the Social Security system receive work credits each year, and disability qualification depends on the number of work credits earned at the time of disability. The amount needed to qualify for work credits changes each year. Social Security defines disability as no longer able to do work previously done, other work cannot be done due to medical conditions, or the disability is diagnosed to last a minimum of one year or cause death. Certain special situations may fall under different rules. Individuals must be disabled at least five months before receiving payments. As long the individual cannot work, payments will continue. At retirement age, disability payments automatically transfer to standard Social Security benefits for the recipient.
  
  Social Security
  
  800-772-1213
  
  socialsecurity.gov
  
  

What is Short-Term Disability Insurance?

• Consumers may purchase both short-term and long-term disability policies from private insurers. The Insure.com website states that the average cost in 2009 for short-term disability insurance was $207 per year on a 76-person group basis. Most short-term policies are part of an employer-based plan and paid for through automatic payroll deductions. Such insurance covers a percentage of the employee's base salary while they are recovering, usually up to two-thirds. Most pay benefits within two weeks of the cause of the disability. Insure states that most short-term policies have two-year payment limits. Some private insurers sell short-term "accident-only" policies.
  
  

What is Long-Term Disability Insurance?

• According to the Council for Disability Awareness, the average long-term disability absence from work is two and half years. Insure.com states that the average cost for long-term disability insurance in 2009 was $238 annually on a 158-person group basis. Most policies will pay benefits after short-term disability benefits are used up and continue to pay approximately half of the base salary for two to five years or until age 65, whichever comes first. If long-term policies are not available from an employer, contact a private insurer. Often financial planners sell these instruments, as do mortgage companies to cover loan payments if disabled. Most policies contain waivers so that premiums do not have to be paid once a person is disabled three months or more.
  
  

Is My Disability Insurance from Work Sufficient?

• Since short- and long-term disability insurance pays a certain percentage of income, decide whether that amount is sufficient if disability strikes. What is enough for an individual may be insufficient for someone with family responsibilities. Budget your monthly and annual expenses and see if employee-sponsored plans could work for you. If not, consult an insurance professional for information on supplemental short- and long-term disability policies.