Disability insurance is a type of insurance that protects the income of beneficiary against the risk of disability which can cause obstruction in performing of the day to day activities as well as it ceases working and earning opportunities.
Suppose you face any injury during a accident in your working life then only insurance you can apply for is the health insurance whereas , if you get disability due to the injury caused in this accident then only insurance that can support is the disability insurance. Disability insurance ensures the income which you have lost due to the mishap.
The insurance plan replaces most part of your income as a substitute to your original income irrespective of whether you are an employee or a self employed individual.
It’s crucial that anyone who relies on an income for their everyday expenses should get a disability plan getting coverage safeguards you against the risk of missing payments on your mortgage, utilities, and other bills. It is affordable in nature and also the coverage is satisfactory enough.
What does disability insurance cover?
The best thing about disability insurance is that you have independence to utilize the monthly coverage money wherever you want to use it to smoothly run your expenses. Whereas, in insurances like health insurance the coverage money can only be utilized to bear the cost of medical expenses incurred during your treatment. So, basically the replaced income that you get through disability insurance is like a lifestyle maintaining budget which you can use according to your wish with no obstructions from the insurance company.
The coverage of the insurance also depends upon the plan that you have chosen like there is a lot of difference between short term disability insurance and long term disability insurance.
Short term disability insurance is generally provided by the employer through group disability insurance plan and the other one is individual disability plan. Time period covered is of around 1 year. The long term disability insurance kicks in after the short term coverage has expired. The coverage might extend to long period or years depending upon the policy.
Who needs it?
It is often considered that only people in the working age need this insurance. Although this is also true but is only partially true. Even children of a small age could get a disability insurance depending upon the need. The disability policies are not age or gender specific it is mostly special on the basis of demand , vulnerability of getting disease or injury, risks involved with job or daily activities, if involved in high skilled professions like doctor, engineering etc. which later on cannot be changed .
According to an estimate every working individual of today’s 20 years of age people will get disability in their 40s or 50s. The proportion is 6 out of 10 individuals will go through some kind of disability in their life. So, isn’t it smarter to have disability insurance which can protect your income in future? Get a disability insurance quote from top companies.
