Almost all of us are familiar with the word "Insurance" and its importance in our lives. Insurance is of different types including travel insurance, pet insurance, home insurance and life insurance. Of them, car insurance and life insurance are among the most opted for. However, we can not neglect other types. This article lays more stress on disability insurance and its various aspects.
As you can easily figure it out from the name itself, insurance basically helps the policy holder to take care of his or her necessities when he or she fails to attend work due to injury or illness. This type of insurance in not complicated at all. It covers you from loss of perception, if you have become disabled due to accident or something. This type of insurance will provide solutions to your rehabilitation and medical expenses.
You will find a different products or policies in this regards when you look for them. Thus, market analysis or study is very important before you opt for any kind of disability insurance so as to ensure that you get the maximum benefits at the best possible price.
Broadly speaking, disability insurance is of two types, ie long term disability insurance and short term insurance. The former offers 75-80% of your actual income on a tax free basis, whereas latter covers around 40-60% of your actual income. Short term policy is usually available for 90-365 days, whereas a long term policy may last up to 2 -5 years or even more than that. The longer the benefit period, more expensive premiums tend to become.
You should consider factors such as renewal and total disability before you select any sort of insurance policy. Go for the policy that can be reviewed by you instead of your disability insurance provider. Avoid the policies that require you to pay some sort of penalty if you cancel the policy.
The cost of insurance depends on various factors like occupation, age, sex etc. The higher the risk of disability becomes, the higher the price of premium becomes. You should choose a disability insurance policy since the beginning so that you can live a peaceful life even after being disabled.
This insurance is different from health insurance in the context that it covers income lost while unable to work, whereas health insurance covers the cost of medicine, doctors as well as hospital costs. If you do not have disability insurance with you, then paying for daily expenses while unable to work implies that your bank balance is draining slowly.
This insurance is among the most important means of protection against any sort of financial loss, if a person gets injured. It happens a lot of time that insurance companies give a hard time to make claims, so your selection of insurance service provider should be well assessed. It is recommend that you come in contact with an experienced disability insurance claims lawyer, as he will help you to save time, money and various hassles and help alleviate unfair insurance practices.