subject: Disability Insurance - Need of the Hour [print this page] Disability Insurance - Need of the Hour
Disability insurance is one of the most sought after insurance these days. With so many disability insurance policies available, you need to make a careful selection. You have to go for a quality and reliable disability insurance policy which is intended to protect your ability to work. If you experience an illness or injury, then you may still continue to get a part of your income. The intention here is not to benefit someone from profit or something, but to ensure that he or she is capable of maintaining a lifestyle which is similar and to avoid any kind of financial difficulty.
Disability insurance is also very complex sometime. You have to read the terms and conditions very carefully. Many companies make their own versions of provisions given in the contract, which sometimes mislead the customers or policy holders.
Since it sometimes required a specialist to assess your situation, thus to avoid any sort of complexity or confusion, it is always better that you opt for a specialist. If you want to go for a simplified and less expensive option, you must be informed about the various options available.
People sometimes refer disability insurance as income insurance. Generally the benefits given out by the disability insurance goes up to 60-70% of the regular income of the policy holder. Insurance policies that you will find today are usually extended to short term as well as long term polices. Short term ones goes from 3-12 months, whereas the longer ones extends up to two years and more. You need to know that longer the benefit period is more expensive will the premiums become.
Health insurance is different from the disability insurance in the sense that it provides cover for medical and hospital expenses, whereas the disability insurance covers up for the loss of earning capacity due to an accident or illness. If you have not got disability insurance cover with you then it implies that every day you have to bear expense, while you are unable to earn. This will drain your savings and you cannot utilize it for future emergencies. These insurance becomes more important if the job of the person requires a lot of risk.
Some people might say that government insurance coverage is more than enough. However, there are lots of lacunae in these policies and you cannot rely fully on them. Like other times of insurance you can draft disability insurance as per your needs and specifications, so as to meet your budget and other requirements. These polices allow you to customize the elimination period, residual coverage, benefit period, renewability etc.
Lastly, you may ask whether the disability insurance is worth it. Well, if you compare the cost of incurring daily expenses from your bank account, the cost of buying a policy is much less. You can also contact an independent agent who will help you in buying these disability insurance policies.
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