| Insurance, as we all know is a form of risk | | | | and not have the policy canceled by the |
| management primarily used to hedge against | | | | company. However, your insurer has the right |
| the risk of potential financial loss. | | | | to increase your premiums as long as it does |
| Insurance is defined as the equitable | | | | so for all other policyholders in the same |
| transfer of the risk of a potential loss, | | | | rating class as you. |
| from one entity to another, in exchange for a | | | | |
| premium and duty of care. | | | | In addition to the traditional disability |
| | | | policies, there are several options you |
| When we think of taking insurance what | | | | should consider when purchasing a policy: |
| immediately strikes our mind are the life | | | | |
| insurances. Families often consider life | | | | Additional purchase options |
| insurance as necessary as a sound roof when | | | | |
| it comes to protecting them from the harsh | | | | Your insurance company gives you the right to |
| winds of fate, especially when children are | | | | buy additional insurance at a later time. |
| small. Primary bread earners want assurance | | | | |
| that even if worst things happen, the house | | | | Coordination of benefits |
| will be paid for and the youngsters can | | | | |
| continue to go to college. But there are many | | | | The amount of benefits you receive from your |
| worst things which can happen within once | | | | insurance company is dependent on other |
| life period like a disability that could | | | | benefits you receive because of your |
| knock the family provider out of the | | | | disability. Your policy specifies a target |
| workplace. While industry studies show that | | | | amount you will receive from all the policies |
| workers are three to five times more likely | | | | combined, so this policy will make up the |
| to be disabled than die early, disability | | | | difference not paid by other policies. |
| insurance is often neglected. What is the | | | | |
| point of having a life insurance if you are | | | | Cost of living adjustment(COLA) |
| disabled? While premature death tends to have | | | | |
| a bigger emotional impact, disability can be | | | | The COLA increases your disability benefits |
| equally, if not more, devastating to a family | | | | over time based on the increased cost of |
| financial stability. Disability can be long | | | | living measured by the Consumer Price Index. |
| term or short term and can be broken down | | | | You will pay a higher premium if you select |
| into a number of broad sub categories. | | | | the COLA. |
| | | | |
| Physical impairments affecting movement. | | | | Residual or partial disability rider |
| | | | |
| Lack of amputation of limbs or other body | | | | This provision allows you to return to work |
| parts. | | | | part-time, collect part of your salary and |
| | | | receive a partial disability payment if you |
| Sensory impairments, such as visual or | | | | are still partially disabled. |
| hearing impairments | | | | |
| | | | Return of premium |
| Neurological impairments. | | | | |
| | | | This provision requires the insurance company |
| Cognitive impairments. | | | | to refund part of your premium if no claims |
| | | | are made for a specific period of time |
| Psychiatric conditions | | | | declared in the policy. |
| | | | |
| The often heard "It won't happen to me" has | | | | Waiver of premium provision |
| become a joke as daily someone or the other | | | | |
| living in this world is diagnosed with some | | | | This clause means that you do not have to pay |
| kind of a disease or other.For example | | | | premiums on the policy after you're disabled |
| Diabetics is one such kind of a disease that | | | | for 90 days. |
| is common among youngsters today.Shocking to | | | | |
| hear!!! But true facts are sometimes | | | | If you decide to buy a private disability |
| difficult to accept.With such a situation in | | | | insurance policy, remember that policies are |
| hand, there is a high demand not only for | | | | legal contracts. |
| life insurances but also disability | | | | |
| insurances. | | | | Read and compare the policies and understand |
| | | | the provisions before you sign. |
| Disability insurances are of two types; | | | | |
| | | | In comparing policies, you might want to |
| Long Term Disability | | | | consider: |
| | | | |
| Short Term Disability | | | | Is disability defined as your inability to |
| | | | perform your own job or any job? |
| Based on the type of disability, there are | | | | |
| various different policies to suit you need | | | | Does the policy cover accidents and illness? |
| and requirement. | | | | |
| | | | Are benefits paid for partial or recurring |
| Short-Term Disability policies | | | | disabilities? |
| | | | |
| Have a waiting period of 0 to 14 days with a | | | | Are full benefits paid after loss of sight, |
| maximum benefit period of no longer than two | | | | speech, hearing or use of limbs? |
| years | | | | |
| | | | Is the policy no cancelable, guaranteed |
| Long-Term Disability policies | | | | renewable or conditionally renewable? |
| | | | |
| Have a waiting period of several weeks to | | | | How long must the worker be disabled before |
| several months with a maximum benefit period | | | | premiums are waived? |
| ranging from a few years to the rest of your | | | | |
| life. | | | | Is there an option to buy additional |
| | | | coverage, without evidence of medical |
| Disability policies have two different | | | | insurability, at a later date? |
| protection features that are important to | | | | |
| understand. | | | | Does the policy offer an inflation |
| | | | adjustment? |
| 1. No-cancelable means the policy cannot be | | | | |
| canceled by the insurance company, except for | | | | There are many disability insurance companies |
| nonpayment of premiums. This gives you the | | | | and agents all around the world to offer |
| right to renew the policy every year without | | | | their services. |
| an increase in the premium or a reduction in | | | | |
| benefits. | | | | Based on once necessities, he or she can |
| | | | choose the best disability insurance to suit |
| 2. Guaranteed renewable gives you the right | | | | their needs. |
| to renew the policy with the same benefits | | | | |