Disability insurance is one of the most significant forms of financial protection available today. Designed to help those who become disabled, usually due to work related injuries, meet the financial needs of their basic necessities when they are unable to work, disability insurance also offers options for covering medical expenses and rehabilitation costs. Separate from the disability insurance offered through the Social Security Administration, the categories of coverage outlined for private disability insurance are similar to the government’s standards.

Occasionally an insurance company will refuse to pay disability benefits for completely valid disabilities covered in under their policy. This particular area of law is covered under insurance bad faith, and those affected can hire an attorney to sue for the benefits they are entitled to.

Disability Insurance Types
Disability insurance policies fall into two main types: Short Term Disability (STD) and Long Term Disability (LTD). These were created to cover disabilities that resolve themselves and semi-permanent or permanent impairments.

Short Term Disability
Short term disability covers the financial needs of those with physical or mental impairments that are expected to last from 13 to 26 weeks. Financial compensation for short-term disability coverage takes about two weeks to process and typically offers close to a 100% reimbursement of salary lost for the duration of the disability. Premiums for short-term disability are normally paid by one's employer but the benefits are paid directly to the employee.

Long Term Disability
Long Term Disability policies are more complicated and varied than short-term disability policies and premiums for this type of insurance are paid by the employee rather than the employer. Claims for long-term disability take from one to six months to process and payments may be made to the disabled for up to five years or until the policyholder reaches retirement age. In long-term disability coverage 70% of income, before taxes, is paid out and if the premiums were paid by the employee and these disability benefits are tax-free.

Long-term disability has several sub-categories defining their disability plans: Own Occupation, Regular Occupation and Any Occupation. Own Occupation benefits are paid out if the disabled cannot perform their current occupation even if they can and do perform work of another sort. Regular Occupation benefits have more restrictions and will only be paid out if the policyholder cannot work in their current occupation, is not working in another occupation and is under a doctor’s care. Any Occupation benefits are only paid out if the disabled cannot work at all under any circumstances.

Individually purchased policies are the least expensive for Any Occupation benefits of the most costly for Own Occupation benefits, with Regular Occupation benefits costing somewhere in between.

There many other factors governing the costs of disability insurance policies of the amounts of data fits a lot out but the fact remains that all insurance companies resist payments wherever they can. If you have been injured and are struggling to receive disability benefits then contact an attorney to help expedite the settlement of your claim.