While you may have purchased a life insurance policy and become comfortable with the choices you've made regarding your policy and its terms, you probably haven't thought about what could happen if, instead of death, you suffer a debilitating injury. A disabling injury can leave you and your loved ones without a source of income, large medical bills, and the cost of both rehabilitative services and long-term care. Many insurance providers give the option of purchasing add-on riders to your existing policy, offering more specific coverage depending on your needs. It is very possible you can purchase a disability income insurance rider and it may benefit you to do so.
Keep in mind when purchasing a Disability Insurance Plan
that you also make sure that it is easily found when the time comes. Often when
it is needed, the person it is provided for is not coherent enough to tell you
with which company it is with. Register it on a database to prevent it from
becoming a lost policy.
The definition of a disability often changes depending on
the existing circumstances surrounding the situation. Total disability
typically covers you being able to perform your own job, with residual
disability covering the loss of earnings or loss of earnings and ability to do
work. Some disabilities will automatically classify you as being totally
disabled (called presumptive disabilities) and includes: the loss of two limbs,
the loss of speech and hearing, and permanent blindness.
The benefit period for disability insurance differs from
total or term life insurance in that the length of time you get the benefit
once you are disabled is dependent on the benefit period you've chosen when you
purchased the policy. This could be anywhere from two to five years or even be
contingent on an age designation. Some policies have lifetime benefits but most
are categorized as short term or long term. Short term policies typically pay
benefits anywhere from as little as 13 weeks up to a 2 year period. Any longer
period of benefit coverage is considered long term. As a general rule, the
longer period you pick means a higher premium you pay out.
There is also a waiting period before you are able to begin
receiving your disability benefits from the policy. Known as the elimination
period, this waiting period often affects the premiums you pay as well. Acting
in the opposite of the benefits coverage period, the longer a waiting period
the less you pay in premiums and the shorter the period the higher. Most people
choose the length of waiting period based on cost and on how long they might be
able to life off of savings or ancillary income before they begin receiving
their disability benefits.
The main purpose of disability insurance is to cover your
loss of income while recuperating from injury. To that end, and to ensure you
have some incentive to return to work, the insurance typically pays only a
fraction of your normal income. The amount of disability you receive is
typically 50 to 70 percent of your income, subject to a designated monthly
maximum. This amount is determined when you apply for the policy and takes into
account earned and unearned income and other disability coverage you may be
eligible for (Social Security, group policy benefits, etc.).
Certain types of accidents or illnesses may not be covered
by the disability policy, including war, suicide attempts, and normal
pregnancies. And if you have a pre-existing condition, the policy may exclude
your condition from the coverage, either permanently or for a specific time
period.
“TO BE THE BEST IN SERVING OUR MEMBERS BY PROVIDING PEACE OF MIND THAT THEIR BENEFICIARIES RECEIVE THEIR INHERITANCE”
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