What Is Disability Insurance
Disability Insurance is a great idea for those who are bringing home a necessary income and would have financial difficulties if unable to work.
What is Disability Insurance?
Disability Insurance is designed to provide financial security for you and your family if you are ever injured or become ill enough to stop work. It offers a type of income replacement until you are healthy enough to return to work.
Reasons to getting Disability Insurance
If you are enjoying a regular income, and have other financial obligations like rent or a mortgage, Disability Insurance should be a consideration. You should have some sort of coverage in the event you develop an illness or injury that prevents you from bringing home an income.
There are more than just illnesses or accidents. Other reasons to get Disability Insurance are:
- mental illness
- musculoskeletal issues
Factors Affecting Cost of Disability Insurance
The usual factors that affect the cost of insurances also apply here.
- family health history
- physical condition
Disability payments may be reduced to offset other benefits if you already have coverage.
Other factors are:
- Health: Having no critical illnesses and being healthy will keep costs low.
- Smoking: This will cause you to pay high premiums. If you don’t smoke, you will see health benefits and affordable premiums.
- Occupation: A manual labourer or tradesman will higher costs than a high-income desk job.
- The sooner you get disability insurance, the less costly it is.
Types of Disability Insurance Policies
A Long Term policy provides benefits for those injuries or illnesses that last months to several years, or until the policyholder reaches the age of 65. A Short Term Policy provides for injuries or illnesses that are only temporary or up to two years in length. For this policy, you will recover and go back to work when ready. Own Occupation is where you will not be able to perform the duties required of your job full time. Any Occupation pays benefits if you are not able to do any part of the job for which you are qualified.
There are also customized Disability Insurance policies for those who are self-employed. You will need documents that prove income, and an assessment made on workplace hazards, and if you can return if injured. The usual income, age, health, and gender are considered as well.
If you have questions or are interested in getting a Disability Insurance policy, speak to your insurance broker for more information.