Total Disability Benefit

What Does Total Disability Benefit Mean?

A total disability benefit refers to the financial assistance provided to policyholders who are completely disabled under disability insurance or workers’ compensation policies. A total disability is one that entirely prevents a person from working, whether temporarily or permanently. Regardless of the duration of the disability, a person who is unable to work can seek total disability benefits to help cover their financial needs during the period of disability.

Insuranceopedia Explains Total Disability Benefit

In addition to typical disability insurance policies, workers’ compensation and Social Security Disability Insurance (SSDI) are two other forms of total disability benefits available to many individuals. Workers’ compensation is provided by employers, while SSDI is provided by the government. However, to receive total disability benefits from either of these programs, the individual must meet specific eligibility criteria, which are determined by medical practitioners. Typically, it must be clear that the person is entirely incapable of working. For example, if someone breaks their back and is unable to walk for over a year, this would be considered a total disability, making them eligible for such benefits.