The Insurance Buying Guide: What About Other Coverage?

If you weren't injured on the job, some states (including California, Hawaii, New Jersey, New York and Rhode Island) provide state benefits for non-occupational disabilities. The amount of the benefits will vary. Generally, the state plan will provide 50 percent to 60 percent of your wages for a limited period of time -- such as six to 12 months.

Yet another form of coverage that could kick in is Accidental Death and Dismemberment (AD&D) coverage, which frequently is provided as part of an individual or group life insurance contract. AD&D coverage pays a "principal sum" (basically, the policy's face amount) for accidental death in accordance with the policy's provisions and definition of accidental death. This same amount is paid if you lose use of both arms or both legs, or if you lose vision in two eyes due to an accident. This amount usually is identified as the capital sum if the policy is paying an accidental dismemberment benefit.

What if your back gives out? Then what?

You could qualify for coverage under your long-term care (LTC) insurance -- if you have it. It will pay for the care of persons with chronic diseases or disabilities, and may include a wide range of health and social services provided under the supervision of medical professionals.

You also might have another insurance policy that would help out in the event of a disability. For instance, accident only insurance provides coverage for injury from an accident -- but it excludes coverage for sickness. Benefits may be paid for all or any of the following: death, disability, dismemberment, or hospital and medical expenses. This is not a kind of insurance that most people need. But some, who travel often, will either buy it themselves or get it as a work-related benefit.

What about life insurance? Unfortunately, it isn't much help in the event of a disability. The life insurance benefits (other than a typically small policy cash value) aren't available. Pension benefits usually aren't available either.

What about credit insurance? This policy is issued only if you are in debt to a creditor. The coverage is limited to the total amount of your indebtedness -- but some insurance companies even balk at paying that. If you're given the choice of purchasing credit insurance, for the most part, you're better off spending the premium money on disability income insurance.