Learn All About Disability Insurance
When you are healthy as a horse, you never expect that an accident could occur. You also never expect to be in a car crash or have your home catch fire, but you buy car and home-owners insurance to be protected, just in case. In many ways, disability insurance is even more essential.
Damage to your property is a nuisance, especially when it is really devastating. But getting hurt so severely that you are unable to work is much worse. Without work, you cannot get paid, and without an income, you cannot afford to pay the monthly bills for your possessions, like your car and home. That is a double whammy.
Learn all about disability insurance so you can make the right decision about what types of coverage you require.
Disability Insurance Terms
When picking out a policy, it is important to review the various disability insurance terms to figure out which one is best suited towards you. Be aware that the terms may change based on the policy, the provider, and the uncertainties caused by injury. Here are some general definitions of the options:
Total Disability: For people who have been completely incapacitated by an illness or injury and are unable to work, a total policy covers missed paychecks.
Partial Disability: Individuals who have suffered an injury or fallen ill but can still perform duties in a limited capacity or part-time basis receive partial DI benefits to supplement lost income.
Non-cancellable: Providers cannot cancel a policy as long as the customer pays the premium on time. Conversely, the policy holder can terminate the contract at any time while maintaining a contract with consistent premiums until a certain time.
Choose Between Options
Here are some alternatives to purchase the best available disability income insurance plan to fit your needs and budget.
Benefit Period: This is the length of time that a policyholder receives disability benefits. Most benefits continue until age 65 (the age of retirement) but more affordable plans reduce that period to a 5-10 year period and lower premiums.
Elimination or Waiting Period: After an injury, the disabled person does not receive benefits until the elimination or waiting period has expired. This period varies depending on the policy. Typically, a longer waiting period will reduce the premiums and is more beneficial to the policy holder. If you are looking to save money, consider moving out the elimination/waiting period rather than shortening the benefit period.
Riders: Terminology used in writing contracts that signifies an additional inclusion. You can get riders for your policy that are not included in normal packages, like one for cost of living that keeps up with inflation.