An insurance plan serves as financial aid for those seeking a secure future for themselves against potential risks and losses. Particularly for those living with disabilities, such additional financial support can prove to be immensely useful in dealing with uncertainties and challenges. In the event of uncertainty, insurance plans offer disability coverage options and can provide significant assistance. Those with disabilities should be aware of some common insurance benefits they may be able to access.

What is considered a disability by insurance providers?
Insurance companies consider disability as physical or mental, which may be caused by injury or illness. Insurance providers also consider congenital disabilities, that is, a condition that has occurred at birth. However, to qualify for life insurance, the condition should not directly impact one’s life expectancy. For example, a disability caused by a spinal injury will not affect life insurance rates. However, conditions such as PTSD or anxiety may affect the rates and application approval.
There are a few common forms of disabilities that insurance providers recognize.

• Cognitive conditions that impair thinking, communication, and memory.
• Vision and hearing problems
• Health conditions that affect mobility
• Mental health issues such as PTSD or post-traumatic stress disorder

The underwriting processes vary among different life insurance companies. So, it may not always be clear which disabilities may result in denied insurance coverage. However, if an applicant is in good health apart from their disability, most insurance providers will approve the application.

Insurance benefits for the disabled
1. Insurance plans offered by the federal government
Persons with disabilities can apply for two types of federal insurance: Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI).

2. Social Security Disability Insurance or SSDI
In most cases, SSDI is associated with the applicant’s work history. This federal insurance program has been designed to pay out benefits to a disabled person and certain members of their families under specific conditions.

• The person must have a disability.
• The person must have worked for a sufficient number of years to qualify for SSDI.
• The person must have paid Social Security taxes during the years they have worked previously.

Additionally, there are specific eligibility criteria for Social Security Disability Insurance (SSDI) that a person must meet. These criteria include age, type of disability, and the duration of work. To determine whether they are eligible for SSDI, a person may use an online benefits screening tool designed by the federal government. If eligible, the person will qualify to receive benefits. Additionally, their spouse or former spouse and children may also become eligible to receive benefits from SSDI.
The application process for SSDI can be completed online, over the phone, or in person. Once the application has been approved, there is a minimum five-month waiting period before benefits begin. If the application is denied, one may appeal for their application to be reconsidered.

Supplemental Security Income or SSI
SSI is a financial assistance program that is different from SSDI. While SSDI requires a person to have a work history to qualify for benefits, SSI provides direct financial assistance to cover basic expenses like food, clothing, and housing. Those who haven’t worked long enough to qualify for SSDI may still be eligible for SSI benefits.

In general, SSI has been designed for those who have very minimal or no income at all. To qualify for the benefits, one must have proof of disability or be 65 years or older. Like SSDI, a person can use an online benefits screening tool to determine eligibility for SSI. Also, the application process can be done online, by phone, or in person. However, the process can be started online if the SSI application is for a child. But it needs to be completed either by phone or in person. Furthermore, if the application gets rejected, one can appeal their application to be considered again.

Insurance options for disabled veterans
Disabled veterans can choose a federal life insurance program such as the Service-Disabled Veterans Life Insurance or S-DVI. This program is offered through the U.S. Department of Veterans Affairs. Veterans who have received a service-connected disability rating from the Department of Veterans Affairs (VA) can apply for this program. Those who meet the qualifying criteria are eligible for a maximum of $10,000 life coverage. In the case of complete disability, a veteran can qualify for supplemental coverage of a maximum of $30,000.

Benefits on group insurance for disabled
Most employers usually offer group health insurance to all their employees. Usually, this type of insurance is more affordable with straightforward claim processes. The coverage generally amounts to at least a year’s employee pay. This means the employee, as well as employers, contribute an equal amount to the insurance premium.

However, if an employee becomes disabled, the insurance provider may waive the payments required from the employee. The eligibility for disability benefits typically depends on certain qualifying criteria, such as the employee being disabled for 180 days or below 60 years. However, these criteria may vary based on the employer and the insurance provider. Nevertheless, the benefits can be significant in providing necessary financial assistance in case of disability.