Question

Discuss how disability insurance differs from workers compensation insurance.

Answer 1

Both disability insurance and workers compensation insurance protect you and your family , if an illness or injury prevent you from working and both varies with employee's wages.But there are some differences,

*Workers compensation insurance is paid by the employer but the disability insurance is usually paid either through employee's health insurance or the government.

*Workers compensation insurance is only applicable to work related illnesses or injury but disability insurance is applicable to all illness or injury prevent you from working, not necessarily work related.

*Workers compensation insurance is tax free but disability insurance is subjected to tax payment.

*Workers compensation insurance continues at a partial rate even if you return back to work but disability insurance stop once you entered into job.

*Workers compensation insurance covers all the necessary and reasonable health insurance and disability insurance covers medical expencesin some cases but there are many hurdles.

*There is no time delay to get Workers compensation insurance, it starts immediately after the injury or illness whereas, diasability insurance is very time consuming and has extensive application process.

*The benefits of workers compensation insurance is determined by the law but the benifits disability insurances (private) determined by the type of policy.