Disability insurance provides an income when the insured person is unable to work because of an accident or sickness. This is the type of insurance that is advertised by the duck.
There are two types of disability policies: Short-Term Disability (STD) and Long-Term Disability (LTD). Short Term Disability usually has a waiting period of up to 14 days and a maximum benefit period of no longer than two years. Long-Term Disability policies (LTD) have a waiting period of several weeks up to several months, and a maximum benefit period ranging from a few years to the rest of your life.
Some larger employers provide Long Term Disability that replaces about 60 percent of the worker’s usual salary. Benefits typically last from 5 years to life.
Disability insurance is also available from insurance agents. Prices vary depending on the benefit amount, the length of benefits, and your age and health.