What Is Disability Insurance Cover?

Due to an accident, sometimes people get permanently disabled, which makes them to lose their job and their family’s only source of income is denied. In such cases, the usual health insurance covers do not pose to be much of a help. Poverty, hunger, debts, financial instability, etc. are some of the problems that the individual and his/her family have to go through. In order to curb the difficulties faced by such families and individuals, there exist disability insurance covers. 

Disability insurance covers help to look after the expenses incurred during the medical treatments in case of disability due to an accident. It also covers the loss of income due to the disability. Under this cover, the policyholder’s family is provided with a monthly income to meet their requirements. It helps to maintain a normal lifestyle by providing short-term disability benefits, long-term disability benefits, and paid sick leaves.    

What Is Disability Insurance Cover? 

A disability insurance cover replaces the portion of your income that is lost due to permanent disability, sickness, or an injury. In the case of disability, it not only covers the medical expenses but also the income that is lost due to no being able to work in that state. The sum assured depends on the percentage of disability and whether it is permanent or temporary. If the disability is short-term, then weekly benefits will be provided to compensate for the loss of income for that period.  

Features of A Disability Insurance Cover 

Let us look at some of the basic features of a disability insurance cover, that can be observed in almost all of the disability insurance policies: 

• You can renew your disability insurance policy without affecting the benefits included in the policy. However, the insurer can increase the premium under certain conditions. 
• The insurer has no right to cancel the policy unless there is a failure in the payment of the premiums. The policyholder can renew it without affecting the benefits mentioned. 
• If no claims are made in a policy tenure, then a part of the premium is refunded to the policyholder as a bonus. 

Types of Disability Insurance Covers 

There are different types of disability insurance covers, which can be chosen by the policyholder at the time of buying the policy. The sum assured is claimed depending on the extent of disability. Broadly the policies can be classified into two types: Short-term disability insurance policies and long-term disability insurance policies.

• Short-Term Disability Insurance Policy 

It has a maximum waiting period of 14 days and the benefit period can last up to 2 years only. The benefits of this policy are provided until you have recovered completely.  The claims that can be settled under this policy include childbirth, disabling injury, and lengthy illness. 

• Long-Term Disability Insurance Policy 

The waiting period under this policy can last up to weeks and months depending on the insurer. The benefit period can last up to years or for an entire lifetime. It covers critical illnesses and injuries which hamper your occupation. Childbirth is not a part of this cover. The common claims that are included in this cover are mental disorders, cancer, cardiovascular disorders, connective tissue disorders, and poisoning injuries. 

How To Select A Disability Insurance Cover? 

Following are some points to consider before purchasing a disability insurance cover: 

• Choose a policy that covers the appropriate amount of sum assured. Make sure it suits your financial budget. 
• Compare various plans from different companies and choose the one that meets your requirements. 
• Make sure you go through the terms and conditions of the policy to have a sound knowledge of the inclusions and exclusions in your policy. 

Conclusion 

You must check the features of different plans offered by different companies to get the most suitable policy for yourself. You must check that the policy meets your requirements and if the sum assured is feasible and enough to cover your financial demands. Based on such factors you can buy a disability insurance policy. 

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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.