Disability Insurance
Disability Insurance- is designed to replace a portion of your income if you become disable and are unable to earn an income. A disability can result from several causes, including an injury, a serious illness or a mental health issue. And the duration of a disability can be either short or long-term.
Why disability insurance?
The risk of disability is much higher than the risk of premature death. Individuals in the age group of thirty and above are at 52% higher risk of being disabled for ninety days or more before they reach the age of sixty – five. Statistics show that if a person is disabled for ninety days than it is likely that he will remain disabled for three or more years. In such cases what is a person supposed to do if he becomes disabled? Subsequently, it would be a wise decision to apply for Disability Insurance. Before concluding to buy a Disability Insurance one should keep in mind that it should be a renewable, non-cancellable policy. This is a safe bet as this Disability Insurance policy cannot be cancelled and is renewed without any medical examination and the premium will remain fixed for that period of contract.
Types of disability insurance:
There are a wide range of options while purchasing a Disability Insurance :-
- A COLA i.e. cost of living allowance in which you can protect the value of benefits in the inflation period.
- A waiver –of – premium means you do not have to pay the premiums while you are disabled.
- A premium refund policy in which you can get back all the premiums paid if you do not make a claim at all.
- A future – earnings option in which you can increase the value of your Insurance coverage by increasing your premiums as your earnings increase.
- Your eligibility for Disability Insurance and the cost of your premiums depend upon various factors such as your health condition, your earnings, your occupation and the type of Insurance coverage you aspire to purchase.
