If your employer offers disability insurance, you can use it when you become injured or too ill to work. You need to know the exclusions so you understand the coverage and payment this insurance offers. Otherwise, you could become disabled and be unable to take advantage of your insurance policy.
Short-Term and Long-Term Disability Insurance Exclusions
For starters, both short-term and long-term disability include similar exclusions. These policies will not cover disabilities that occur because of:
- Self-inflicted injuries that occur when you're sane or insane.
- Acts of declared or undeclared war.
- Criminal acts you commit or attempt to commit.
- Civil commotion, riots, insurrections or rebellions.
- Motor vehicle accidents that occur when you're driving while under the influence of alcohol.
Two Potential Exclusions
The two types of disability insurance also have an individual exclusion. Short-term disability insurance typically excludes illnesses or injury related to your occupation, but those illnesses and injuries are usually covered by workers compensation.
Long-term disability insurance will not go into effect if you're incarcerated because of a criminal act or public offense.
Other Disability Insurance Limitations
In addition to these short-term and long-term exclusions, your disability insurance policy might only provide two years of coverage for mental-nervous disorders. If you're disabled because of stress, depression, anxiety, dementia or another mental-nervous disorder, you may receive disability benefits for a limited period only.
Policies may also limit coverage for drug or alcohol addiction. If you suffer from a disabling addiction, your policy may either exclude coverage or provide benefits for a shorter period.
Ask your employer if he or she offers short-term and long-term disability insurance and read your policy carefully to understand its exclusions and limitations. For general plan options, see Disability Income Insurance.
If you do not have employer coverage, consider private options and learn more about Individual Disability Insurance. Then, talk to an agent about purchasing a policy that fits your needs.
Frequently Asked Questions
Will disability insurance cover a work-related injury?
Work-related injuries are typically covered by workers compensation rather than short-term or long-term disability policies.
Are mental health conditions covered?
Some policies limit mental-nervous disorder coverage to a specific period, often around two years, so check your policy details.
Does disability insurance cover addiction?
Coverage for drug or alcohol addiction is often limited or excluded; policies may offer only short-term benefits if any.
Will I be covered if I committed a crime?
Disabilities resulting from criminal acts are generally excluded, and long-term benefits may be denied if you are incarcerated for a public offense.