Securing Your Future With Disability Insurance

Securing Your Future With Disability Insurance
There may be a​ time in​ life when you​ may not be able to​ work due to​ illness or​ some other medical condition,​ whether temporarily or​ permanently .​
Such a​ condition may result in​ a​ loss of​ income during that period .​
While the​ state does provide compensation at​ such times through social security programs,​ many insurance companies too offer insurance against loss of​ income during the​ disability period.
Although nearly all insurance companies offer disability insurance,​ the​ terms may differ according to​ each company’s policies .​
Since insurance companies are in​ business,​ they keep their business interests foremost .​
Hence,​ it​ is​ advisable to​ understand the​ implications of​ the​ terms before buying disability insurance .​
The terms and conditions laid out in​ the​ policy document should be studied carefully,​ and any ambiguities should be clarified with the​ insurance broker.
Disability is​ defined as​ a​ medical condition that prevents working in​ an​ occupation which a​ person has ’enjoyed or​ has become accustomed to’ .​
When you​ buy a​ disability insurance policy,​ make sure that the​ terms of​ the​ policy articulates an​ express statement about this .​
This is​ important,​ because under the​ terms of​ many companies,​ disability is​ a​ condition that prevents you​ from being gainfully employed in​ ‘any’ occupation.
The implication of​ this being,​ that even though you​ may be unable to​ work in​ the​ occupation you​ were engaged in​ just before being disabled,​ but are able to​ work elsewhere,​ you​ would not be entitled to​ receive the​ disability benefit .​
Therefore,​ in​ order to​ enable you​ to​ receive the​ disability benefit when you​ are unable to​ pursue the​ job in​ which you​ are skilled,​ the​ terms should state that entitlement shall accrue when you​ are unable to​ pursue your ‘own occupation’.
Then,​ check the​ elimination or​ the​ waiting period,​ which denotes the​ time between the​ beginning of​ the​ disability,​ and the​ first payment under the​ policy .​
You can opt for an​ elimination period of​ 30,​ 60,​ 90,​180,​ 360 or​ 720 days .​
Your choice would govern the​ amount of​ the​ premium .​
a​ shorter elimination period would attract a​ higher premium.
Finally,​ check the​ benefit period,​ which is​ the​ duration for which the​ benefit is​ payable .​
This can be a​ 2 to​ 5 year period,​ depending on​ the​ type of​ policy .​
Some companies have policies that cover payments of​ up to​ 65 years of​ age .​
Longer benefit periods have higher premiums.
Disability has been divided into two categories: the​ first being short-term disability,​ and the​ other long-term disability .​
Illness,​ physical injury or​ pregnancy is​ covered under the​ short-term disability .​
However,​ no benefits are payable under this category,​ if​ the​ policyholder is​ qualified for workers’ compensation .​
Besides,​ the​ period of​ disability without medical supervision is​ also excluded .​
This category of​ coverage elapses after 180 days .​
Any disability beyond 180 days comes under the​ long-term category .​
The coverage starts from the​ 181st day of​ the​ disability,​ and the​ benefits are payable up to​ regular retirement age,​ based on​ the​ date of​ birth.
A disability insurance policy can be purchased to​ pay monthly payments from $300 to​ $5000,​ subject to​ a​ maximum of​ one third of​ the​ gross monthly salary.
The kind of​ insurance policy is​ a​ means of​ providing much needed support in​ times of​ distress,​ caused by loss of​ income due to​ the​ inability to​ work,​ because of​ a​ medical condition .​
It has great value and it​ would be prudent to​ opt for one to​ secure your future.

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