If your employer offers disability insurance, you can use it when you become injured or too ill to work. You need to know the exclusions, though, as you understand the coverage and payment this insurance offers. Otherwise, you could become disabled and be unable to take advantage of your insurance policy.
Short-Term and Long-Term Disability Insurance Exclusions
For starters, both short-term and long-term disability include similar exclusions. These policies will not cover disabilities that occur because of:
1. Self-inflicted injuries that occur when you’re sane or insane,
2. Acts of declared or undeclared war,
3. Criminal acts you commit or attempt to commit,
4. Civil commotion, riots, insurrections or rebellions and
5. Motor vehicle accidents that occur when you’re driving while under the influence of alcohol.
Two Potential Exclusions
The two types of disability insurance also have an individual exclusion. Short-term disability insurance typically excludes illnesses or injury related to your occupation, but those illnesses and injuries are covered by workers compensation. Long-term disability insurance will not go into effect if you’re incarcerated because of a criminal act or public offense.
Other Disability Insurance Limitations
In addition to these short-term and long-term exclusions, your disability insurance policy might only provide two years of coverage for mental-nervous disorders. So, if you’re disabled because of stress, depression, anxiety, dementia or another mental-nervous disorder, you only receive disability benefits for two years. Additionally, your policy might limit coverage for drug or alcohol addiction. If you suffer from a disabling addiction, your policy may either exclude coverage or cover you for only one year.
Despite these exclusions, disability insurance provides valuable assistance if you become disabled and cannot work. Ask your employer if he or she offers short-term and long-term disability insurance. Then, read your policy carefully and understand its exclusions and limitations. If you don’t have disability coverage, talk with your insurance agent about purchasing a disability policy today.
