Have you ever thought about what would happen if you get into an accident or become sick with an illness that disables you permanently, or even temporarily to your finances? What happens to your income and the bills that keep piling up? Disability insurance is an insurance product that pays funds to you when you can not work because of an accident or illness. It is an often over looked insurance that is available to private individuals. Most people do not think of what will happen to their income if they get hurt or develop a long term illness and become unable to work. Losing your income because of an unforeseen event like this can financially devastate a family. Fortunately, disability insurance is available to help provide an income for such events.
You can purchase disability insurance as a separate insurance policy or you can have it added to some life insurance policies. Disability insurance is quite often referred to as permanent disability insurance. There are also some temporary disability insurance plans that can protect your income if you are temporarily disabled due to an accident that worker’s compensation would not cover. Worker’s compensation is a disability insurance that covers injuries that occur while on the job. You are entitled to it through your employer. However, temporary disability insurance coverage is a policy that covers your income if you are injured when you are not working. For instance, if you are on a mountain climbing vacation and fall and break your back. Your temporary disability insurance plan would then cover your income until you were able to return to work. The range of coverage you can get under disability insurance can depend on the policy that you choose. Some policies will pay a lump sum, while others can pay monthly payments. There is usually a 3 to 6 months waiting period before the policy will kick in and begin making payments however.
Some disability insurance plans may limit the amount of payments you can receive over your lifetime. Some policies may also place restrictions on what type of disability it will cover. For example, some policies will not make payments to you if you are not able to work in your normal position, but can work in other reasonable positions.
When shopping for disability insurance, there are a number of questions you should to ask to find out what the policy will and will not provide. For instance, will the premiums always remain the same or will they change over time? Will you be able to have the option on when the premiums are paid or how often? You may have the option to make monthly or quarterly payments with some providers. Ask if there are any restrictions on the policy. What are the specific amounts that will be paid? Is there a maximum pay out and what types of disabilities qualify? You’ll need to get answers to these questions before you will be able to choose the best policy. When shopping for disability insurance keep in mind that the prices may depend on your risks. If you are in a high risk job, such as law enforcement for firefighting, you will have a higher risk for injury so you policy may cost more. Some insurance providers will allow you to combine your policies with other to save on premiums. For example, you could combine disability insurance with life insurance to get a reduction in price.
Make sure you get quotes from several insurance companies before you purchase disability insurance. This way you can compare policies before you choose the best one for your needs. Also, before you sign a contract for an insurance policy you should make sure you read it through. If you have any questions about requirements, premiums or the overall coverage talk them over with the insurance agent.