Disability insurance, or disability income insurance as it is also called, is a type of insurance policy that offers cover in case someone is involved in an accident or put in the hospital and not able to work and generate income.
Who ought to have disability insurance? The fact of the matter is that an accident or illness can strike anytime and every individual should be prepared for the unpredicted. If you are self employed or work for a firm that doesn’t provide any such advantages, disability insurance is critical.
Many credible insurance agencies offer a liability insurance policy as part of their range of products and services. The cost of such a policy would be dependent on many factors: The more your insurance package should pay out in case of disability, the higher your associated premiums. Exactly the same applies for the type of cover associated with the policy. Some policies will cover benefits in an array of circumstances, while other policies will be more specific as to the stipulations of such benefits. The broader the range of conditions cover, the higher the month to month premium.
Company owners are also advised to get disability insurance. In this instance the policy is termed business overhead expense disability insurance and the purpose of such a policy is to cover basic business expenses should the owner of the business experience a disability. This will enable the business to still pay the office rent, wages and general day-to-day running costs.
Should you be interested in obtaining disability insurance, there are many of questions that you should ask your insurance agent or broker. Probably the most important questions are how long the waiting period is before claim payments will commence and how much money will be paid month-to-month.
It is also vital that you inquire about the business’s policy on partially disabled persons. In some instances a policy will only compensate once a person is not able to do ANY job, while other policies will pay out if the beneficiary can’t return to his/her own occupation.
Disability insurance really should be high on each person’s priority list – don’t wait until it’s too late!