As life insurance can financially protect people and their families in case of death, disability insurance can help to protect the whole family in case of being unable to work because of an accident or disease. Most disability policies replace a percentage of the previous earnings, generally between fifty and seventy per cent with a monthly limit.
Individuals can choose between a policy that covers a certain period of time – such as four or five years – or a policy able to cover the period between the moment of getting it and the time of retirement. As long as the covered period increases, the monthly rate does it to.
An important thing to consider is that payments of the policy’s benefits can be delayed for three to four months from the moment of considering disability. The elimination process takes ninety days to fulfill requirements to be declared disable, and the first payment is usually effected one month after that period. Individuals can choose a policy that considers a shorter elimination period, but as expected, they are more expensive than the traditional ones.
The concept that insurance companies manage regarding what they consider as disability tends to be very strict, making it more difficult to fall in that category and for that matter getting payment for the benefits. Some policies establish for example that if the person can do any kind of job, even one that provides smaller earnings than the previous one, he is not disabled. The most expensive options are the ones that pay benefits if the person can not do the professional job that they used to do.
Before contracting an insurance policy, the person must be very sure about how they are covered, and they should also read the fine print. Many policies refuse to cover a disability that might be considered a result of previously existing diseases. When considering the obtention of a policy, it is recommendable to ask employers if they offer this kind of package.
Collective policies are generally cheaper than the individual ones but the main disadvantage of this is that when people change their jobs, they lose the policy. Individuals can also do a little research on the internet in order to have a complete idea of what products are available on the market and which companies provide them. The best idea is to compare the cost of the protection and the needs of the applicant in order to get a personalized policy.
