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 perhaps, car insurance and life insurance are among the most opted for. However, we cannot 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 earning, 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, i.e. 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 might 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 renewability and total disability before you select any sort of insurance policy. Go for the policy that can be canceled 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. Read the rest of this entry »
