Disability Insurance - Few Points To Be Remembered

We all are very familiar with the word "Insurance" today. Life insurance, home insurance, vehicle insurance, travel insurance, pet insurance are few of the common insurance policies that we opt for in our day to day lives. To add in the list of insurances is Disability Insurance, which is definitely one of the much, sought after insurances.

As its name suggest, disability insurance helps the policy holder take care of his necessities when the person fails to attend work due to illness or injury. There is nothing complicated about the disability insurance as it is purely an insurance that will cover you for loss of earning in the event you are unable to work through disability. This insurance coverage will solve some of your financial problems such as medical and rehabilitation expenses.

There are a number of products available in the market that claims supporting the disabled. Market study and analysis is therefore very important when you shop for disability insurance to make sure you get the maximum benefits for the best possible price.

Disability insurance is generally available in two basic types: Short-term disability insurance and Long-term disability insurance. Short-term disability insurance covers 40% to 60% of the policyholder's actual income while the long-term disability insurance offers 75% to 80% on a tax free basis.

Factors such as total disability and renewability of the policy should be considered very carefully while selecting the disability insurance policy. It is always advisable to choose a policy that can be cancelled by you and not by your disability insurance provider. Look for a non-cancellable disability insurance which can neither be cancelled by the insurance providers nor can they increase your premiums or guaranteed renewable policy which can't be cancelled but the premiums can be raised.

The cost of the disability insurance depends on many factors like age, sex, occupation, etc. The greater the disability risk, the higher is the insurance premium. To conclude choose a disability insurance that suits your needs right from the beginning so that you can live a normal and a peaceful life even after being disabled.

Authors: John T. Johnson