What is the Difference Between Disability and Life Insurance?
If you are looking for life and disability insurance, Got DI can help you find the best policy to suit your needs. Although we primarily deal with disability insurance, we also feature life insurance coverage.
They are very similar in that they both provide peace of mind should an accident occur, but they do have distinctions. Here are the differences between the two.
Life insurance pays out a lump sum to the family of the policyholder in the event of his/her death. When you start a family as the primary bread-winner, you will begin to worry about who will provide for your family in case you suddenly die in an accident. In order to feel secure for their future, you can purchase a life insurance policy.
These policies are more about providing for your loved ones. When you get married or start a family, it is recommended that you purchase a plan that will accumulate over time.
Disability insurance protects a person’s wages should they get hurt in an accident or become ill, thereby hindering the ability to work. By paying regular payments, called premiums, you ensure that you will receive a percentage of your income if you become disabled. In the event that you should die, some policies act like life insurance, paying out the amount as a lump sum to your survivors.
Own-occupation, or own-occ, is a form or disability insurance that allows you to return to work in a less stressful capacity if you are unable to perform the duties of your prior job. You will still receive all or some of the benefits, as long as they do not combine with you new salary to exceed the sum of your former income.
These plans are deal with injury and sickness, rather than death, and are beneficial to anyone in a high-paying, specialty profession.