California Disability Insurance

Written by Patricia Tunstall
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California disability insurance has limited benefits just for short-term disabilities, but it is one of only five states that offer such assistance to wage earners. California's program is designed for partial wage replacement only, and is funded by employee payroll deductions. It is, however, affordable, and covers the majority of California workers.

Some employees are exempt from paying into State Disability Insurance: railroad workers, some employees at non-profit organizations, most government workers, and those who file for religious exemptions. Otherwise, coverage and payroll deductions are mandatory, with the same low rate applying to all workers. Coverage is restricted to non work-related illnesses or injuries because the Workers' Compensation program deals with disabilities that happen in the workplace.

Advantages of State Discount Disability Insurance

First, California disability insurance follows the worker. You can change jobs many times, and you are still covered by this program. Unlike individual disability insurance purchased privately, this state insurance cannot be canceled and you cannot be rejected because of pre-existing health conditions, medical problems, or the nature of your employment. Other policies will not accept pregnant or soon-to-be pregnant applicants, or those who are required to carry a weapon on the job.

With private insurance, the longer the wait, or elimination, period, the lower the premiums. Experts often recommend a waiting period of 90 days or longer to cut the cost of the plan to the employee. California's plan has a waiting period of just seven days, so an individual or family can start receiving compensation for lost wages right away. With benefits of up to 52 weeks, a disabled worker might be able to recover and return to work.

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