What Does Total Disability Benefit Mean?
A total disability benefit refers to benefits that policyholders who are completely disabled receive from disability insurance or workers' compensation policies. A total disability is a disability that completely prevents a person from working at all. It could be permanent or temporary. However, regardless of the length, a person who is totally unable to work can seek total disability benefits for financial assistance during the disability.
Insuranceopedia Explains Total Disability Benefit
Besides the typical disability insurance policies, workers' compensation and Social Security Disability Insurance (SSDI) are two other forms available to many people. Employers provide workers' compensation, while the government provides SSDI. However, in order to receive total disability benefits, the person must qualify. Medical practitioners make this decision. Typically, it needs to be clear that the person is completely incapable of working. For example, if they broke their back and cannot walk for over a year, this would be a total disability and entitle them to such benefits.