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Disability Insurance

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Assurance is a very important factor in this age where everything — from health to jobs — has become too unpredictable for comfort. This is why one of the most thriving businesses in the industry have insurance. Everyone wants to be secured and have options when it comes to the benefits in their employment.

One good example of this employment benefits is assuring coverage for yourself in the event that you have a medical condition. Know what you can receive from applying for a disability insurance so you can maximize the monthly benefits of the insurance coverage.

What is a disability insurance?

With the issue of insurance, most people are already covered with the more known and basic ones such as life insurance and pension plans. However, there is also the option of applying for a disability insurance.

Nowadays, accidents and unpredicted conditions can occur every day, which can leave you disabled and unable to go to work for a period of time. And you have to be prepared to deal with these things, especially for the breadwinner of the family. Sickness usually prevents you from working, and without an insurance program to ensure that you will still get compensation even when you are not at work is very important.

Statistics show that disability can strike anyone between the ages of 30 to 65. In some cases, it can even strike earlier for other people, and the more serious conditions can last for more than half a year. Because of this, people have to suffer from loss of valuable income.

Applying for and availing of a disability insurance is considered a must for everyone. This type of insurance was made to ensure that even if you have a medical condition that forces you to take a long leave, insurance code dictates that a portion of your income will be replaced even if you cannot attend work.

Things to remember when choosing a disability program

When choosing a disability program that you will apply for, you have to set your own criteria, which should be catered to your needs. Always consider the monthly benefits that you can get, the health providers that are part of the program, and even the basic eligibility requirements for applying.

Here is a quick grocery list of what should be found within the conditions or clauses of your disability income program:

Consider your living and working condition

The most important thing to consider is your situation. There are workers who may be part of a company or corporation and there are self-employed in their own business ventures. Some working conditions include those who may be the main breadwinner in the family who supports everyone and others who only give their own contributions to the household.

However, whatever your condition may be, it is best to apply for a disability insurance, because in the event of an unpredicted long leave from work, you will be assured that your lifestyle will not incur a major overhaul.

Know the amount of disability income insurance

One requirement to consider is that the disability insurance should ensure a payback to a considerably high or ample amount of your income. This is because in the event of disability, you will have the resources to go support yourself, so the insurance should cover your health insurance for the medical bills. Most employee-based plans are relatively inexpensive but have several limitations, and factors including occupation, age, potential lost income, and even gender can have significant effects on benefits.

Usually, an employer would replace up to 60% of your income. A complete replacement of the amount cannot be done because it will contradict with the incentive of having you go back to work after your recovery from your condition or rehabilitation. If ever you have paid the premium out-of-pocket fees, or if your employer does not pay for it, then it will be tax-free.

Benefits of the program

It is also important to note the coverage of the disability insurance. The benefit period of the program is can last from anytime between a few months to a good number of years.

The disabilities covered by the disability insurance are also a good gauge in choosing. You have to note that a disability insurance is more concerned with accident-only occurrences, so these are the only ones that are inexpensive. So you have to decide if you would want it to cover serious illnesses.

Choose the policy that works for you

Policy definition is very important when it comes to disability insurance. There are three types of this definition, the most important being the policy that covers you in the event of inability to perform material and substantial duties of your job.

The second type, called the income replacement coverage, is similar to the first, except that it is limited to the time when you can’t work during a disability. The last type is called gainful occupation policy, which is also the least expensive of all.

You must also decide if you want the policy to be non-cancellable or guaranteed to be renewable. Note that non-cancellable means that your premium would not go up and your coverage would not be lessened so long as you pay the premium expenses on the disability insurance policy. With guaranteed renewable policy, you can always renew it, but it also means that premiums can rise.

Disability insurance should be part of every professional’s plan, even at the early part of one’s career. This is because disability can strike anyone at any time, and it is always better to be safe than sorry.