Disability Income Insurance

February 15, 2012 by  
Filed under Health Insurance, General

Disability Income Insurance – Protection In Troubling Times

Nobody likes to think about being disabled. Unfortunately when accidents strike they will quickly change your financial outlook. What disability income insurance options do you have if you find yourself disabled, temporarily or otherwise? In other words do you have a plan of action if you don’t have, or plan to take, disability income insurance?

There Are 2 Types Of Disability Income Insurance Contracts:

  • Non-cancellable: premiums are guaranteed level for the life of the contract unless the benefits are increased.
  • Guaranteed renewable: Company reserves the right to increase the disability income insurance premiums for everybody, should the number of claims in a particular class begin to rise.
  • Your Disability Income Insurance Concerns:
  • Occupation: The dangers of your job are a factor companies weigh to see the chances of you getting injured.
  • Compensation: How much are you looking for to cover your expenses, and is it less than 70% of your present gross salary?
  • Medical History: Your current health and what medical history your family has, will also affect how the life disability income insurance carriers will see you.

Other factors that go into assessing your situation are your gender, age and province or state of residence.

You also have the option of riders. Residual and partial riders are available to you if your situation changes and you are returning to work in a different job and experience a loss of income. Or if you return to work as a part time employee, but in the same job.

Plan Disability Income Insurance For Potential Accidents Or Sickness

Although no one likes to talk about getting hurt or such, the benefits of a disability insurance policy greatly help during times of crisis. Investing in a policy helps strengthen your overall financial plan or at least puts a floor underneath it. Get together soon with an insurance broker and discuss how your personal situation can benefit from disability income insurance.

 disability income insurance

Disability Income Insurance

Financial experts confirm that a solid income foundation includes disability income insurance. This strategy comes from the obvious need to protect your future income and yourself in case of an accident or death. During your working career the chances of getting injured are something to take notice of.

 Disability Insurance And Why You Need It

Most people aren’t aware of the chances of getting injured or the devastation a lack of income can cause. Not to sound too pessimistic, but a study was done to look at what the chances of becoming disabled before your retire are. For men, in the USA, there is 43% chance of a long term disability, and sorry ladies, it is a 54% chance for you.

Does Disability Insurance Offer A Solution?

You should take a rational look at what would happen if income stopped for a long period of time, or worse, for the rest of one’s life. Take the time to investigate, learn about, and then consider purchasing a disability insurance policy. Investigate how a life insurance company defines their disability insurance contract. Pay close attention to make sure they define disability insurance, such as the inability to perform the duties of one’s own occupation. You can do your investigation with the internet; there is plenty of information available.

What Does A Good Disability Insurance Policy Contain?

Look for a policy that contains a generous recovery and residual benefit. This is coverage in the event that if you are unable to continue to work or have to work part time or at a reduced output. This will allow you time to rebuild your business, while you recover. Consult an independent life insurance broker to sit down with you and discuss your disability insurance options. With a little effort, you can better prepare yourself with proper disability insurance.

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