Temporary Disability Insurance: How Does It Work and Which One Is Best?

The main purpose of Temporary Disability Insurance is to provide financial support during the period of disability. Generally speaking, these insurance policies cover situations related to accidents. However, There is a Temporary Disability Insurance policy that also covers situations related to illness.

This is the case with Income Protection Insurance: even if you are receiving benefits from Social Security due to a medical leave, you can count on additional financial support, paid out in monthly benefits.

So, it’s easy to see that the best Temporary Disability Insurance is the one that safeguards your income in the event of illness or an accident. But there are other factors you should consider. Throughout this article, we’ll explain what they are so you can choose the best option for you.

What should you keep in mind when choosing Temporary Disability Insurance?

We will now explain the key points to consider when taking out temporary disability insurance.

Assess the level of protection provided by the roofs 

Check which coverages are included in the Temporary Disability Insurance policy. These coverages determine the level of protection provided by the insurance, so it is important to review which risks are covered.

Incapacity due to illness or accident

As a general rule, Temporary Disability Insurance covers only accident-related risks. In the case of Income Protection Insurance, this coverage is extended to include situations related to illness as well. In other words, Support is guaranteed cumulative monthly amount, including the amount of sick leave benefits, for 24 months.

Hospitalization due to illness or accident 

This coverage provides a daily benefit in the event of hospitalization, which is an important financial aid that you should include in your insurance policy.

Expenses for accident-related treatment 

In the event of an accident, this coverage covers medical treatment expenses.

Death or disability 

This coverage guarantees the payment of a benefit to the Insured Person or their beneficiaries in the event of death or permanent disability resulting from an accident. With this type of coverage, it is important to verify the amount of the benefit that will be paid.

Special Risks 

This is a special type of coverage offered under the Income Protection Insurance policy. The risks covered include, for example, participating in amateur sports such as soccer or extreme sports, among others.

See the premium variables 

The premium amount for Temporary Disability Insurance depends on the type and number of coverage options selected and the sum insured, among other factors.

To help you choose the best solution for you, we recommend that you consider your protection needs so that you purchase only the coverage you need.

Calculate the Insurance Coverage

To help you determine the sum insured, we recommend that you:

• First, find out what the average reduction in your salary will be if you are unable to work;
• Next, check the difference between this amount and your current salary.

With this calculation, you can already get a clear idea of the financial support you need to maintain your quality of life. To make your insurance coverage calculation even more accurate and tailored to your needs, we recommend that you also take your expenses into account.

• Current expenses: Include all monthly invoices;
• Unexpected expenses: Make an estimate and come up with a comfortable amount to cover situations such as car repairs or a broken appliance;
• Expenses related to an illness or accident: Consider the additional expenses associated with being on sick leave, such as transportation for your children, doctor's visits, and so on.

Now that you have all this information, it will be easier to determine the amount of insurance coverage you should purchase.

How Do I Choose the Best Temporary Disability Insurance?

With EXS, an insurance broker with over 25 years of experience, the process is quick and hassle-free. And best of all: it’s free.

After assessing your needs and interests, EXS compares the best offers from Portugal’s leading insurance companies through a free quote simulation. This search allows you to find the most advantageous solution on the market, based on your preferences and offering the best value for money.

At EXS, you'll find:

• Technical Consulting, through specialized professionals who are available to guide you through the entire insurance enrollment process, from the quote to the policy issuance, including support throughout the term of the policy;
• Personalized Service, allowing you to get answers to all your questions from an experienced team with a proven track record in the insurance market;
• Strong negotiation skills, thanks to partnerships with the country's 26 leading insurance companies;
• Proven reputation, EXS ranks among the TOP 5% of Portugal's Best SMEs.