Disability Insurance: Do I Need It?
Disability is a policy meant for the self-employed, temporary employees. It is income paid weekly or monthly when one cannot work because of sickness or injury. Workers covered under disability insurance policies must prove that they cannot perform the majority of their present duties to qualify for entire disability status. The disability insurance policy states the terms of disability, policy tenure, and coverage limit.
There are various kinds of disability contracts. Some of the plans are available through the employer’s group health package and some are from private insurers. There are also various public sector programs like Social Security and some State Disability Insurance programs.
Insurance experts advise customers to compare options before taking out a disability insurance policy. The most reasonable costing policies can also be the most restrictive in terms of eligibility and monthly payouts. Individual insurance companies may set their own terms; therefore one should look for precise matter like a significant income percentage payout, a 90 day or less waiting period for benefit eligibility.
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There are various types of disability insurance:
- National insurance program: The most important form of disability insurance is the one offered by the government. This program offered by the government covers all the citizens who are otherwise uninsured or underinsured. This program is referred as National Insurance in the UK and Social Security in the US. The benefits offered by this program may not be huge but it pays enough to debar poverty.
- Employer disability insurance: This kind of insurance is offered by the companies to cover their employees against any possible hazards of disability. Employees face a high possibility of meeting with an accident at the work place. So, it becomes essential for companies to offer disability insurance to its employees.
- Worker’s compensation: This kind of insurance is offered to workers disabled by job related injuries. This program also covers all medical expenses and pays benefits to the family of workers who died while performing job-related tasks.
- Individual disability insurance policy: This program is meant for the self-employed, temporary employees or those who are not covered under employer disability insurance. An individual can buy such an insurance policy from any insurance company. As with many other insurance plans, having disability insurance coverage is always financially secure. There are many group insurance policies offered by insurance companies providing emergency treatments or short-term health care, but only a few protect employees from the long-term effects of a disability.
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