Generally, standard disability insurance policies include coverage for entire incapacity due to an accident, whether temporary and permanent. If you become totally and permanently incapacitated, you will receive the entire sum assured if you are covered under permanent disability insurance. If the disability is partial, the policy will pay a proportion of the covered amount, based on the degree of disability.

There are two main types of disability insurance: short-term and long-term. Both types of plans are intended to help replace a portion of an employee’s income in case they become too ill or injured to work. Short-term disability insurance typically covers benefits for a period of up to 3-6 months, and long-term disability insurance may pay benefits for a period of five, 10, or 20 years—or even until an employee reach retirement age, depending on the plan. As an employer, you can offer either type of coverage, or both, as a voluntary benefit.