Health and disability insurance products protect you in case of illness or accident. The purpose of this insurance is to cover loss of income and additional expenses incurred due to an illness or accident (extended care, prosthesis, medications, etc.).
The prospect of an illness or injury that keeps you from working and earning a living is inherently stressful. And if you’re also concerned about losing your health care coverage, that can only add to your worries. But will you, in fact, lose your health insurance while on disability? The reality is it depends – on how you get coverage, the length of your disability leave, and whether that leave is covered under the Family and Medical Leave Act (FMLA), among other things. The good news is, in many situations, you will be able to maintain your medical benefits – and if not, you should have access to other health insurance options. Here’s what you should know:
- If you are covered by your spouse’s employer-provided health insurance coverage
This is probably the best case scenario because your disability and your spouse’s role will not be an issue. As long as your employer continues to provide health insurance and your spouse pays his or her share — your coverage should last forever. - If you are covered under the ACA (Affordable Care Act)
Also, here’s the good news: If you purchase a health insurance plan through your local health care marketplace, disability will not affect your coverage under the ACA. However, it will affect how much you pay for your plan. If your income decreases while you are on long-term disability, you may be able to receive higher benefits, lowering your costs. - If you get health coverage through your employer
The answer to this question varies because your health benefits are closely tied to your job. If your disability separates you from your employer, it can affect your benefits. However, some issues arise, which we will discuss here:
The length of your disability matters
Your disability leave may be protected under the FMLA
Finally, the disability that keeps you from working must fit the description of a “Serious Health Condition.” However, if you qualify for disability benefits, in all likelihood, you will meet the FMLA’s Serious Health Condition criteria.
Check your employer’s policies
When you have a long-term disability, be sure to contact your employer’s office or refer to your employee handbook for health insurance policies. Some employers may maintain health insurance in situations not covered by the FMLA.
The importance of having health and disability insurance
Unexpected things always happen. Whether you suffer an accident, illness, or other disability, the emotional and financial consequences can be difficult.
If an accident occurs, knowing you have health and disability insurance will help you focus on recovery instead of worrying about your finances. You’ll get the peace of mind you need to heal!
Types of Insurance designed for your needs
Disability and income insurance
This policy pays monthly premiums in the event of disability. Some products can make you money, while others can pay off your debt.
Accident insurance
This policy provides tax_free financial assistance that you can use as needed if you suffer from a critical illness covered by the policy. This means you can stay healthy and focus on what matters most: recovery.
Critical illness insurance
This policy can provide more money or cover other expenses incurred as a result of an accident. Some options provide you with monthly payments to meet your financial obligations.
The Essentials of Disability Insurance: Simple Tips
The future is uncertain, so it’s important to prepare as best as we can for what life may bring. If you’re looking for guidance and answers to common questions about disability insurance, this information can help you get started and make the best decision based on your specific needs.
- If you or others depend on your income — you need it.
- Disability insurance replaces a portion of your income when you can’t work.
- Most long-term absences are due to illnesses, not accidents.
- You need it even if you’re young and healthy.
- The risk of a disability during your working years may be greater than you think.
- A good rule of thumb is to protect 60-80% of your income.
- Some disability insurance is better than no disability insurance.
- Make sure you know how much disability insurance you get at work.
- There is no substitute for good advice.
- The financial strength and reputation of the company you buy from matters.