Nifty Insurance Blogger

Having a disability insurance policy could be a lifesaver if you cannot work for a period, especially with a family; this type of cover could help financially if you are prevented from attending work. This allows a person who is incapacitated to get well without having to worry about how their family will survive. Statistics show that someone is more likely to have an extended period from work, owing to accident or injury, and need disability cover, than they are to die before they reach 65 years old.

It is an unfortunate fact that most people think they have a greater chance of dying than being laid off work through disability so life insurance policies are more popular. Despite statistics showing that a middle aged worker has a greater chance of needing a 3 month break from work because of an accident as opposed to dying before they reach 65, is almost impossible. The problem is disability insurance costs more than basic life cover as it is costlier to provide.

Premiums are based on many characteristics like age, occupation, health and the calculations of potential lost income. There are a few ways of reducing the costs with the main one being selecting a longer period of time or waiting period before the plan starts to pay; with this in place there is less probability of the claimant making a claim. Alternatively the policy holder could request a shorter cover period which would only cater for short periods off work; with this arrangement the risk is placed squarely on the shoulders of the claimant who will need to find additional income if the incapacity period is long.

Irrespective of what plan you decide upon, most providers will only pay a percentage of your salary. Health insurers offer two main types of coverage: the first is for short term disability insurance protection lasting only a matter of months. On the other hand, total disability cover can provide limited financial cover for a much longer period but it will be the responsibility of the claimant to prove that they are unable to carry out work related tasks that provided their income previously.

Irrespective of the type of policy you have, payments for disability are made regularly, every week or month until the end of the incapacitation or the policy, whichever come first. Below are listed some areas that should be looked at when researching the benefits of any health policy:

• If there are any medical restrictions
• Whether the income is taxable
• Time frames for benefits
• Your current occupation

You cannot expect the same level of income cover in your disability insurance plan from each company so you need to check this carefully first. The cover they supply can be anywhere between forty to seventy percent of the original salary, which is quite a difference. This needs to be checked thoroughly especially if you have a family with large financial commitments each month.