If you are currently working on a job or you have a profitable business, consider yourself blessed. But you also have to plan for the worst, and consider getting a disability income insurance in case something happens to you so that you can no longer work on your job or your business. A disability income insurance policy pays a certain percentage of your current income when you are not able to work. However, there are specific circumstances in which you can claim the benefits. Make sure you read the fine print of a disability income insurance policy before signing and paying for it.
Before deciding to buy disability income insurance, check with your employer if they are providing you with a form of disability income insurance in the form of sick leave and other benefits. Find out if there are specific restrictions in claiming disability benefits. Most companies only grant disability income benefit to employees who were injured while in the workplace, or while out on a work related assignment. Also check if there are other available benefits being provided by the government such as social security when you become totally or partially disabled. List down the monetary equivalent of these benefits that are available to you, and compare it with your current income and your monthly expenses. This should give you a picture of how much you will need in case you are not able to work due to disability.
In choosing a disability income insurance policy, you need to consider a lot of details. The following are just some of the major considerations you need to look at:
- Is the agent you are dealing with a licensed agent?
- What is the coverage of the disability income insurance?
- Is your current occupation being covered by disability income insurance policies?
- How much is the premium?
- What are the payment options?
- How long will it take for you to make a claim?
- What is the length of the benefit period?
- What is the amount of the benefit?
- What are the benefits for partial and total disability?
- Will there be benefits if disability is due to substance abuse and mental disability?
- Is there a cancellation period where you can cancel the policy and refund your payments?
When purchasing a disability income insurance, shop around first. Inquire from your employer or your professional association if they already have a group account with an insurance company, where you become part of a group that gets a uniform insurance policy at a lower price compared to an individual policy. This way, you are able to save in premiums, and your group can negotiate for better terms.
If you have a spouse that is also currently working, check out which one of you has a better employer benefit. You may be able to work out that only one of you needs to buy an extra disability insurance. Decide which one of you will have to buy the insurance. Off hand, it may be best for the one earning more to buy a disability income insurance.