Having a Disability Insurance Policy

By: Dean Calvert

Having a disability insurance policy could be a lifesaver if you cannot work for a period, especially with a family; sickness which prevents you from working for a period of time means that an alternative income is required. This can take some of the emotional strain away the financial difficulties it is certain to create during your incapacitation.Statistics prove there is a strong likelihood that the average worker will need recuperative time from work before they reach 65; therefore requiring a disability protection plan.

Unfortunately, this fact is often overlooked when life insurance coverage is being arranged. A person in their prime at forty is more likely to need three months off than they are dying before the age of 65. Like all types of health protection, searching for the best disability insurance rates is imperative. Although calculating the premium can be a complicated process, the largest factor involved is the income level the claimant requires. To help reduce the possible financial impact of taking out of the premiums it is possible to delay when the first payments are made; with this in place there is less probability of the claimant making a claim. The other option to this would be to reduce the period of payments for incapacity; this can be a risky move if the period of incapacity is longer than the period arranged for payment.

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. If you are looking into this subject then you will see that only a couple of plan options exist, the first being short term disability insurance. Total disability cover is in force for a longer period albeit at a reduced rate but the onus is on the claimant to prove they can no longer perform the work they carried out before.

Whatever the situation, a person making a claim owing to incapacitation will be sent a disability benefit check every month until the end of the plan or they return to work. Some key issues to research in health policies include:

*Any previous medical problems
*Will the benefit be tax free?
*How long the benefits will be paid for
*Your current occupation

The level of cover provided for your original salary will differ with each insurer's disability insurance policy. This percentage of your income paid by your insurance plan can be as little as forty percent or as much as seventy percent, so you can see there is quite some variation. More than any other factor, it is this one that you need to be sure of as once you have taken out the plan and found it necessary to make a claim, it will be too late for you to change it.

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