Updated: Oct 14, 2021
What's up, folks, this is ben green here. And of course, I'm here to optimize your career, your location and your finances. And today, we're talking about disability insurance, super exciting topic that actually is really, really exciting, if you end up needing to actually use it. So what is disability insurance, disability insurance is paycheck protection, it is basically paycheck insurance. So there are essentially two types that you have. So you have short term disability insurance, which means that if you you know, if you get sick, for example, if you break your leg, anything along those lines is going to keep you out of work. And without the ability to work and earn a paycheck for like the, say, 30 days, 60 days or 90 days, for example, Short Term Disability Insurance will kick in and start paying you it can pay you in as little as seven days, once you once you kind of file for disability typically is like seven or 14 days, sometimes this as much as maybe 30 days, that until it kicks in for you, and then it starts paying you for a period of can pay you three months or even up to six months. Okay? That is short term disability. And that's going to cover especially that's going to cover you especially if you don't have any rainy day funds, which hopefully, if you're kind of following some of the stuff that we're advising, you have some rainy day funds that are going to cover you for at least three to six months. But even if you have rainy day funds that are going to cover you for three to six months, it's really nice to be able to get a paycheck as well as you can not go to work. Alright, so that's what Short Term Disability Insurance is covering that paycheck, protecting that paycheck for a one month, two month up to about a six month period. All right, the bigger one, the more important one is long term, disability insurance, not to be confused with long term care insurance. Long Term Disability Insurance is going to cover you and cover you for a year can cover you for two years. There are people that have been on Long Term Disability Insurance for 30 years, okay. So if you happen to become disabled, you get sick and you cannot go back to work or you get injured. For example, if you're a doctor, as an example, when you like break all your hands, your hands are mangled or whatever, and you cannot perform your daily activities again, then Long Term Disability Insurance will kick in after a 90 day period normally, and it can pay you for two years can pay you for five years, 10 years or it can pay you even up to age 65. So if you're 35 years old, and you were a doctor, and you had something horrible happened to you and you cannot go back to work, you cannot do the work that you were doing before you got injured, the long term disability would kick in and could potentially pay you up until age 65. All right. So that's what Long Term Disability Insurance is. That's the type I have. In particular, I have had short term disability before but long term disability is super, super important. Of course.