For most people with an insurance portfolio, disability insurance is either at the bottom of the list or not at all. It isn’t even a priority. If you have life insurance, health insurance and car insurance, it pretty much looks like you’re covered. However, long-term disability insurance is something worth considering.
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Why Disability Insurance?
If you are self-employed, you are more likely to experience physical difficulty in the future, especially if your lifestyle is hectic. Also, if your job involves physical exertion, you’ll be more prone to this.
Permanent disability insurance is a sub-category of personal accident insurance, and provides financial backup if you are unable to work due to a disability.
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If you’re an artist or a writer, you run the risk of developing career-threatening carpal tunnel syndrome. An unexpected accident resulting in a hand injury can rob you of your livelihood forever.
These are undesirable events are something you need to plan ahead for, and this is where disability insurance can help you out. After all, nobody can predict if or when they’ll end up with a disability after an accident or unfortunate physical disorder. Additionally, you can accurately predict how long your savings from work will last after such an event, should it ever happen.
If you’re thinking of relying on what the government (especially, if you’re a social worker) then think again. This only covers accidents caused in the workplace, which means you’re on your own when you aren’t performing your professional duties.
This is where purchasing your own disability insurance comes in handy. You might be paying higher premiums but, in the long run, it’s well worth it.
What types of illnesses does a disability insurance policy cover?
There are two types of disability insurance policies – short-term and long-term. In some cases, you can even take an extension on the short-term policy.
The common diseases usually covered under the clauses of a disability insurance policy with a full payout claim are –
- Heart attack
- Brain surgery
- Brain tumour
- Loss of limbs
- Kidney failure
- Loss of independence
- Chronic lung diseases
- Apallic syndrome
- Terminal illness
The claims process is simple. All you have to do is submit a written notice with medical proof, or a diagnosis summary of some sort, and provide a copy of your documents for verification.
Once that’s done, the insurance company pays out the entire claim, making it a hassle-free experience in times of urgency. A Permanent disability cover like Personal Protect is lifelong without any age restriction for renewal.
But let’s look at what Disability Insurance does not cover
We’ve talked about why you need disability insurance.
However, you should watch out for those exceptional situations where you cannot file a claim to the insurance company. These include:
- Treatment for pregnancy, HIV, and other STDs (Sexually Transmitted Disease)
- War related injuries
- Attempted suicide
- Drug abuse leading to hospitalization
If you cannot afford long-term disability insurance, you can take the short-term option, which offers coverage for shorter periods like a few weeks or months. You’ll end up paying on your own once the benefits period of your cover runs out, though. That’s why it’s better to play it safe and sign up for a long-term disability insurance policy despite the high premiums.
Once you obtain disability insurance, you get a lump sum benefit irrespective of the actual medical bill. You also get paid sick leaves. With the cumulative benefits it offers, you can see how buying a long-term disability insurance helps.
So, what are you waiting for? Pick the policy best suited to your requirements and live life fully without worries!
Hi Vidya Ji,
Really a very informative article.
yes, I completely agree with your point that Disability insurance is at the bottom of the list. Disability insurance is really very important to have and we should understand that we can not compare this with health insurance.
Nobody knows what future resides for us and we should be well prepared for that.
A very Nice article. Thanks for sharing it
Thank you for visiting and commenting, Kalpana. Nobody likes to think of an accident, but that’s the thing about them – unpredictable. 🙂