Sick Leave: How Does Temporary Disability Insurance Work?

Losing income due to an inability to work had never been a concern for Mariana, a real estate consultant whose salary varies based on her commissions. But after experiencing a drop in her income due to illness, Mariana sought a solution that would provide her with greater security. She found it by Purchase temporary disability insurance that guarantees your income in the event of illness or an accident. 

During the nearly two months she was on sick leave, Mariana lost the equivalent of 40% of her salary and had some difficulty meeting her obligations. That’s when she realized the need to protect herself against unforeseen events and safeguard her income. Since taking out Income Protection Insurance, she has been able to live with peace of mind, knowing that her future and that of her family are secure.

In this article, discover the benefits of temporary disability insurance—such as the Income Protection Plan—and find out why Mariana never had to worry again about a loss of income due to illness or accident.

What are the benefits of Temporary Disability Insurance?

Maintain financial stability 

One Temporary disability insurance, such as Income Protection Insurance, which includes illnesses in its coverage, offers a Monthly coverage for up to 2 years that can be combined with sick leave benefits. This way, it compensates for the partial loss of income until you can return to work.

With this support, you can keep your fixed expenses under control without the risk of going into debt, and it allows you to cover unexpected expenses that may arise due to illness or an accident. With Income Protection Insurance, you can keep your finances in order without any worries.

Ensuring peace of mind for the future 

When monthly pay is variable—due to sales commissions or services rendered—or when we need our full salary to cover our expenses, getting sick or having an accident is a cause for great concern.

Temporary Disability Insurance allows you to specify the monthly benefit you wish to receive in the event of illness or an accident. This way, you know you can count on this type of benefit to keep your bills paid and maintain your standard of living, safeguarding your financial stability.

Free yourself from any feelings of insecurity and be assured of a safer, more peaceful future for yourself and your family.

Preserving quality of life

For Mariana and for many of us, family is the most important thing, and work allows us to provide a better quality of life for those we love. That’s why protecting your ability to work is so important: to ensure the well-being our family deserves.

With Temporary Disability Insurance due to Illness or Accident, you’re ensuring that your income remains stable while you recover peacefully and without any setbacks.

The most serious scenarios, such as death or permanent disability resulting from an accident, are also covered, and compensation is paid.

How Temporary Disability Insurance Works

As a general rule, these insurance policies only cover disability resulting from an accident, but Mariana chose the Income Protection Insurance because it also includes coverage for illness. 

This temporary disability insurance serves as a supplement to sick leave, which is equivalent to 60% of the salary, with rare exceptions. This is a monthly amount set by the insured at the time of enrollment to compensate for lost income, and it can last up to 24 months. In addition to this benefit, you receive a daily allowance in the event of hospitalization, making your coverage more comprehensive and useful.

It also covers other benefits, such as special risks that are almost always excluded from standard coverage plans. These include, for example, pre-delivery complications and amateur sports, ranging from soccer to extreme sports.

Other benefits include protection against theft at ATMs and the costs associated with replacing documents and keys—situations that can lead to unexpected expenses during less profitable months.

How do I purchase temporary disability insurance, such as Income Protection Insurance?

Mariana contacted EXS to arrange her Temporary Disability Insurance. EXS is an insurance broker that inspired her confidence and trust thanks to its more than 25 years of experience in the industry and its ranking among the TOP 10+ in the financial services and insurance sector.

With a strong market presence, the client benefited from EXS’s negotiating expertise—EXS has in-depth knowledge of current insurance market offerings and works with 26 of Portugal’s leading insurers, streamlining the insurance underwriting process. Quickly and easily, after gathering your information and assessing your needs, a simulation was run to determine the most beneficial and appropriate solution for your profile.

Follow Mariana's example and contact EXS. Talk to specialized professionals who are available to look out for your best interests and answer all your questions at no cost.