Is Life Insurance Policy Substitute For Disability Insurance Policy?
It is quite true that life is full of uncertainties' but mankind has developed its own way to address the issue. "Insurance" is the buzz word here. It promises you to protect you and/or your dependents against the eventualities of life. Risks are associated with every step we take in life and hence insurance companies continue to make insurance policies to cover every possible risk. In fact a common man today has to buy load full of insurance policies to cover the risk of his life, his car, his house, his employment, his medical cost and so on.
Nevertheless all these Insurance policies are very important not only for our peace of mind but to also overcome any practical difficulty we might come up against. In this article we will discuss about 'Disability Insurance' which still is in its infancy days and may not be much popular but still absolutely necessary.
People often confuse 'Disability Insurance' with 'Life Insurance' and fail to understand its importance. In case of 'Life Insurance' the insurance company pays a set amount of money in case of early death of the insured to his family. Be it a horrific car accident or a plane crash or even if one was choked to death laughing, insurance company would pay dependents of the person insured a set sum. It will help the family maintain same standard of living even when the main earning member of the family is not around.
Now think of a situation where you are involved in that horrific car accident or a plane crash and by God's grace manage a miraculous escape but unfortunately get disable for rest of your life. Now not only it will be difficult for you to support your family while you are in this trauma, but even after you have recovered mentally out of this situation, your permanent disability would restrict your capability to earn money. Further, your immediate family members will also need to spend more time with you to take care of you, which in return will also affect their earning ability. In this situation you cannot lay a claim on your 'Life Insurance' company because you are still very much alive and your Life Insurance policy will prove to be of no use.
Ideally there should be a single policy which covers both of the above situations but world still remains an imperfect place and the only option available to you would be to take both these insurance policies separately. There is also a possibility that your employer has covered you for a Disability Insurance and you do not know about it. So please check with them before taking as Disability Insurance policy.
We all must understand that 'Disability Insurance' and 'Life Insurance' are not substitute of each other. In fact these both complement each other and have completely distinct features to cover two different eventualities of life.