States That Offer Disability Income Insurance

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Are There States That Offer Disability Income Insurance?

States That Offer Disability Income Insurance

There are five states and Puerto Rico that offer disability income insurance to employees working in these areas. In general, most of the U.S. has decided that state disability insurance has not been a priority, however. The coverage offered by these states is normally termed Temporary Disability Insurance (TDI) or sometimes called “cash sickness benefits.” If you work in one of the following states, you may be eligible for employee disability coverage.

  • Rhode Island. The first state to offer coverage (1942), Rhode Island still provides TDI from an account funded by employer and employee payments.
  • California. Instituted in 1946, even some self-employed persons may opt for coverage in this state.
  • New Jersey. Employee disability coverage was established in 1948.
  • New York. In 1949, New York enacted their legislation for TDI.
  • Hawaii. This state waited until 1969 to install their temporary insurance benefits coverage.
  • Puerto Rico. The island enacted their laws in 1968.
Even if you live and work in one of these jurisdictions, please remember that a key word in this coverage is “temporary.” This coverage does not replace comprehensive short- and/or long-term disability insurance provided by private employers or individually-purchased disability income insurance plans.

Refer to your insurance policy contract for specific information regarding your coverage and for actual terms, conditions and exclusions. The above statements are general in nature and may or may not reflect the actual terms of your insurance policy.



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