How Disability Insurance Differs From Health Insurance
It is important to understand the separate purposes of disability insurance and health insurance in order to understand the differences between the two. It is important to note that there also are differences between long-term and short-term disability insurance.
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Health Insurance
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Health insurance generally only pays for the cost relating to preventative as well as ongoing healthcare. This includes the cost of doctor's visits, emergency room care, hospitalizations and prescription drugs. Many health insurance plans also cover the cost of lab tests and x-rays.
Short-term Disability
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Unlike health insurance that only covers the costs of healthcare, short-term disability insurance gives you a check, usually based on a percentage of your regular paycheck, if you sustain an injury that prevents you from working for a short period of time. Short-term disability usually lasts for a maximum of one year. After which time if your injury still prevents you from working, a long-term disability plan kicks in.
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Long-term Disability Insurance
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Long-term disability insurance works the same way as short-term disability, just for a longer period of time, usually up to two years before you have to go through a re-qualification process. Just like short-term disability, this type of insurance is so you can pay other, non-health related bills like rent or utilities, while you're not working due to an injury.
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References
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