May is Disability Insurance Awareness Month, and the Tennessee Department of Commerce and Insurance ("TDCI") encourages all Tennesseans to consider protecting one of their most important assets - their paycheck.
Disability insurance is insurance for your income. In the event of an illness or injury, it replaces a portion of your income if you are unable to work due to an illness or injury.
Without insurance, even those who experience a short-term illness or injury can quickly run out of money without a backup plan to replace their lost income.
"Disability insurance is an often-overlooked line of insurance, but it can provide significant benefits to policyholders at a time of great need," said TDCI Assistant Commissioner for Insurance Bill Huddleston. "Disability insurance protects a policyholder by providing financial assistance that can help cover the cost of expenses such as food, mortgages, or tuition that might otherwise be difficult to afford if the policyholder were to lose his/her ability to earn a living."
Short- and long-term disability insurance can help working Tennesseans protect themselves in the event of an illness or injury. Short-term insurance will typically replace a portion of a policyholder's salary for three to six months. Long-term insurance will generally begin six months after the disability and can last for years or even until retirement age.
Disability insurance and other income protection insurance products can typically be obtained through employer-sponsored benefits or purchased individually.
Employers can play an important role in providing access to disability insurance for their employees. However, many individuals may also wish to purchase this type of insurance outside of their employer-sponsored plans. TDCI offers consumers the expertise of the Consumer Insurance Services ("CIS") Team, which educates consumers and mediates insurance-related disputes. CIS's program covers a vast array of insurance-related issues.
Consumers who wish to learn more about disability insurance may reach out to our Consumer Insurance Services Team, by calling (615) 741-2218.