How A Good Disability Insurance Policy Upholds You During Sick Times

How A Good Disability Insurance Policy Upholds You During Sick Times

Worried about the​ revved up medical bills on​ your recent sickness- temporary disability? it​ has made a​ big whole in​ your monthly budget. And now you​ are having sleepless nights on​ any possibility of​ recurrence of​ the​ situation in​ future.

Well,​ with the​ changing lifestyles,​ diseases among the​ generations have increased. Sometimes these diseases take the​ from of​ disabilities,​ costing you​ more on​ your pockets. But buying an​ insurance policy can give you​ some amount of​ respite. When you​ are unable to​ work,​ disability insurance coverage replaces some portion of​ your earned income. you​ get two major types of​ disability coverage:

Short-Term Disability Coverage: This type of​ insurance coverage gives you​ cover for the​ early days of​ your disability. This policy can pay you​ benefits for two weeks to​ two years. Usually short-term disability is​ included in​ the​ employee's benefit package.

Long-Term Disability Coverage: as​ the​ name suggests,​ long term disability helps you​ replace your income for an​ extended period of​ time. This time period generally ends after five years or​ when the​ age of​ the​ disabled person is​ 65. This long term disability is​ either provided by your employer or​ you​ can also have it​ individually. Under this,​ there are two types of​ individual insurance. One is​ non cancelable and the​ other is​ the​ guaranteed renewable.

In this type of​ insurance scheme,​ the​ renewal of​ the​ policy cannot be refused by the​ insurer. the​ insurer is​ also required to​ pay the​ premiums on​ time. the​ major difference between the​ two is​ that,​ you​ have an​ extra security in​ a​ non-cancelable contract,​ that the​ premiums will never be raised above that shown in​ the​ policy.

But a​ guaranteed renewable insurance policy can raise the​ premiums,​ if​ the​ change made affects all the​ policyholders. Due to​ this,​ the​ initial premiums are less expensive for the​ guaranteed renewable policy as​ compared to​ the​ non-cancelable one.

Insurance on​ individual disability is​ a​ basic concept. it​ considerably replaces your total income and that too on​ a​ tax free basis. the​ disability policy provided by every company is​ different from the​ other. But it​ is​ not a​ product that you​ can shop for on​ the​ basis of​ competitive rates. Buying a​ cheap disability insurance policy is​ just like throwing away money.

So before going in​ for a​ particular insurance policy,​ it​ is​ advisable for you​ to​ do a​ little market survey and put your hands on​ the​ one that is​ the​ most suitable to​ you.

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