How much does New York Life pay for short-term disability?
Everyone wants financial security in case they are ever unable to work, but only a fraction of Americans are covered by a disability insurance policy.
Only around 14% of Americans are currently covered by a disability insurance policy. One of the firms offering coverage is life insurance provider New York Life, who are the largest mutual life insurance company in the United States.
Mutual insurance companies are owned by policy holders, meaning that any profits are typically returned to members rather than withdrawn from the business to pay shareholders’ dividends.
Disability insurance is designed to provide an alternative stream of income if you are injured or suffer a severe sickness which leaves you unable to work. Claimants will receive monthly payments directly into their bank accounts, meaning that they can spend the money however they want.
There are two options for disability insurance; short-term and long-term coverage. New York Life do not currently offer short-term disability coverage.
How much does New York Life pay for long-term disability?
New York Life focuses on long-term coverage that is designed to provide a sustained source of income for workers with serious disabilities. Some policies are capped at the age of 65 or 70, but broadly they will offer an alternative income throughout your working life.
Those with a qualifying sickness or injury will receive monthly payments for between 50% and 70% of their normal income. The type of ailment that qualifies you for the support will depend on the type of policy that you take out with your provider.
But bear in mind that the eligibility terms typically differ after the first two years of claiming disability payments. During the first 24 months you will receive the support if your illness or injury leaves you unable to fulfil your “own occupation”, i.e. the job you last had.
However after two years, the criteria in some policies changes to “any occupation”, meaning that you will only continue to receive the support if you cannot reasonably be expected to return to the workforce in any field.
What is short-term disability insurance?
Short-term policies are designed to provide temporary support if you are unable to work due to injury or sickness. You can ensure you receive a limited period of disability insurance payments with short-term disability coverage, which typically lasts between six weeks and two years.
If you are deemed eligible for the payments, this form of coverage will replace between 60% and 80% of your usual earnings.