Nifty Insurance Blogger

Having a disability insurance policy could be a lifesaver if you cannot work for a period, especially with a family; you might not be able to prevent the reason you are incapable of work but you can prevent the debt that can occur when you are not providing an income. The last thing anyone who is incapacitated wants is to worry about providing an income for their family. 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. For example for a forty year old there is a greater chance of a disability that requires at least ninety days from work, than there is of dying before the age of sixty five. 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. To help reduce the possible financial impact of taking out of the premiums it is possible to delay when the first payments are made; the provider would be less at risk if was only a short term incapacity. The other is opting for a shorter period of cover; although you need to bear in mind that once your period of benefit ceases you would have to support yourself.

Insurance company policies will differ but the majority will only pay a percentage of your lost income so it is a good idea to choose the best one for you and in this instance, the cheapest may not necessarily be the best. There are two policy options available; the first is short term disability insurance which only covers the claimant for a few months of incapacity. The second plan covers extended periods and is called total disability cover; this allows a reduced payment to be made after the claimant shows he cannot carry out the work he was previously employed for.

Irrespective of the circumstances, when a person is approved for these payments they may receive them weekly or every calendar month. Other key points to consider when looking into health policies are if there are restrictions on:

• If there are any medical restrictions
• Whether the income is taxable
• When do the payments stop?
• Are you employed in a high risk 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.