Short-term and long-term disability insurance can help you make ends meet when you are unable to work in New York due to illness or injury. Do you need both types of disability insurance, and if so, how do they differ?

How disability insurance works

Like other types of insurance, disability insurance offers you coverage for claims when you pay a monthly premium. Unlike many other types of coverage, you don’t have to meet a deductible to start receiving compensation for your claims. Depending on your policy, as long as you are medically unable to work, you can receive payouts ranging from 40% to 70% of your salary. Payouts from disability insurance purchased with after-tax dollars that are not part of your employer’s benefits package are tax-free.

The difference between short-term and long-term benefits

Short-term policies usually cover the first few months that you are unable to work, whereas long-term policies can cover you for years, even up to the time that you become eligible for Social Security benefits. Many people think that long-term policies are sufficient if they cannot work for extended periods, but in reality, having short- and long-term policies may be in your best interest. Most long-term policies don’t take effect for 60 to 90 days after your doctor deems you medically unable to work, leaving a considerable gap in your income.

What if my disability insurance claim is denied?

Unfortunately, some insurance companies are notorious for denying their customers’ disability insurance claims. If your disability claim has been denied, you shouldn’t give up as many insurance carriers deny disability insurance claims for improper reasons.

The first step in getting the denial overturned is to exhaust your insurance carrier’s internal appeals process. One of the most common reasons to deny a disability claim is that there was insufficient evidence showing that you could not work. If you exhaust the appeals process and your insurance carrier still won’t pay, you have the right to file a civil lawsuit against your insurance carrier to recoup the money you deserve.