Disability Income Insurance
Disability Health Insurance, often referred to as Disability Insurance or Disability Income Insurance, provides partial wage replacement in the event an insured/enrolled individual is unable to work due to a non-work-related illness, injury, or pregnancy. Premiums are paid by workers through a program like the California State Disability Insurance Program.
In contrast, a disability caused by a work-related illness or injury will not be covered by Disability Insurance. Instead, replacement wages and other benefits will fall under a Workers’ Compensation claim.
Depending on the circumstances of the injury or illness, injured workers are entitled to specific benefits as structured by the employer’s workers’ compensation insurance program. In California, there are five basic types of workers’ compensation benefits: medical care, temporary disability benefits, permanent disability benefits, supplemental job displacement benefits, and death benefits. Injured workers may be entitled to one or more of these benefits. Benefits in other states may differ.
Disability Insurance is also often available on a voluntary basis through your employer or directly from an insurance company. Coverage availability differs by state.
If your Disability Insurance is offered through your employer, premiums may be paid through an automatic withdrawal from your paycheck. If you purchase coverage directly from an insurance company, you will likely pay your premiums through a direct withdrawal from your financial institution or using a credit or debit card.