Today I spoke with a CRNA located in Texas in the market for an individual disability policy. She works in a private practice where she does not have a group disability insurance policy available. She is young, married, and has a lot of student loans.
She was unsure if she needed a short term or long term disability insurance policy. The answer? It depends.
Short term disability insurance policies typically kick in at 14 or 30 days and pay a monthly benefit anywhere from 90 to 180 days.
Short term disability insurance policies are important if you don’t have a lot in savings or reserves. Or, in this client’s case, if you are concerned about a future pregnancy that will take you out of work for a period of time.
Long term disability insurance typically kicks in after 90 or 180 days and pays for a longer period of time either 5 years, age 65, 67, or to age 70. These policies are important to be able to sustain yourself if something happens for a longer period of time.
The cost of a short term policy is more per thousand than a long term policy. Ideally, she would have enough money to be able to cover both risks.
She decided that she really needed the short term coverage at this time and a reduced amount for a long term policy which would cover her personal needs.
Ideally, it is important to reserve around 3 month’s of income in a savings account to be able to cover expenses until your long term disability insurance policy starts. Until then, a short term disability insurance policy may help bridge that gap.
For more information about short term and long term disability insurance or disability insurance for CRNAs, contact Set for Life Insurance today!