Why long term disability insurance is required?
Why long term disability insurance is required
?Long term disability insurance companies provide you with wider scope of benefits ad options. This insurance plays a bigger role in case of policyholders and investors, who plan to work together along with the company to achieve their financial objectives.
By opting for long term protection, the clients are able to focus more on investing on themselves rather than being assured that their professions or businesses are in good and stable condition.
One of the examples of this type of insurance plan is a non taxable monthly income, which is provided by the company until the client attains the age of 65 years. This is among the most common long term disability insurance which is availed by the policyholders. However, different policies and rules apply to the client who has total disability at the age of sixty or above.
The income benefits that are received from the long term disability insurances are mainly based on the salary of the employee after the maximum short term insurance has expired. In majority of the cases, the employees are enrolled in a short term disability plan that is promoted by the company.
This plan also provides for the various financial benefits and secures a certain percentage of the income for the employee when he is having hard times due to disability. Whenever the duration of the short term policy expires, the long term plans comes in and continues the same benefits and income provisions. These benefit many be quarterly, half yearly or yearly and are based on CPI. A person may also opt for a monthly annuity premium benefit so as to provide a monthly contribution of an amount that is equal to a certain percentage of a person's monthly income that is set by the company upon the issuance of a quote.
Another mode is the survivor income benefit. This scheme immediately reimburses the family of the client within a month. The benefit is equal to the last monthly salary of the policyholder and multiplied by an amount which is decided by the insurance company. Under this scheme, a policyholder must have been disabled for a period of one year prior to his or her death or should be survived by another dependent like a student or an underage wife etc.
Long term disability insurance companies always try something new, in order to maintain provide maximum benefits and quality service for the investors. These companies have different sectors, which provide for various client needs of health and life insurance, disability, supplemental help, mental incapacitation and family life. Thus, it becomes almost essential for you to know the various aspects of the company that you are willing to invest in and that can help you to achieve long term financial objectives or goals.
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