Unlocking the Mystery: How Disability Insurance Covers COVID-19

Understanding Disability Insurance and COVID-19

As the COVID-19 pandemic continues to impact lives around the globe, many are left wondering if their disability insurance will cover them in case they fall ill. The answer is a qualified yes, but it depends on the type of disability insurance you have. There are three main types: employer-paid disability insurance, Social Security disability benefits, and individual disability income insurance policies.

Short-term vs. Long-term Disability Coverage

Short-term disability insurance may cover COVID-19 if your illness requires a medical quarantine that prevents you from working. However, social quarantines, such as those mandated by states for people to work from home, do not qualify you for disability benefits. On the other hand, some COVID-19 survivors are reporting lingering symptoms that may qualify them for long-term disability. However, qualifying for long-term disability benefits with COVID-19 is generally more difficult due to the elimination periods in long-term policies, which require you to be unable to work for at least 90 days before receiving benefits.

The Importance of Individual Disability Income Insurance

Employer-paid disability insurance is the most common, required in most states, and typically provides short-term sick leave and sometimes long-term disability coverage. However, individual disability income insurance policies are the best way to ensure adequate income in the event of disability for most workers. Unfortunately, more than half of U.S. workers forego disability coverage, and baby boomers, who are more likely to get injured or sick, are even more likely to forego the coverage. If you are 40 years old, you have about a 40 percent chance that between now and age 65 you'll be disabled for 90 days or more for any reason. Injury accounts for 10-15 percent of the reasons why people have long-term disability, while illness is the other 85-90 percent.

In conclusion, while disability insurance can cover COVID-19, it's crucial to understand the type of coverage you have and the conditions under which it applies. For those without individual disability income insurance, it's advisable to consider purchasing a policy to ensure financial security in the event of disability.