Disability insurance for individuals can play a very important role in our lives. There are several things that we are completely unaware of and we don’t have any control over that. This is the main reason why people opt for insurance policies. Insurance is basically something that covers your expenses when you are having a bad time. There are several types of insurance policies available in the market but we are talking about disability insurance for individuals here.
What is disability insurance for individuals?
Health insurance and all other types require you to pay the premium on a regular basis. That premium helps you get benefits when you fall ill or something bad happens to you. But what will happen if you are unable to pay the premium of your health insurance and that too in a time when you need it the most. The health insurance company will not give you benefits if you miss even a single premium.
Such a situation is very likely when you are already in a bad situation. But you can go on with your regular expenses in such a time of you have income disability insurance. So you don’t have to worry about paying your rent, buying groceries, and other things with the help of it. As you are aware of the fundamentals, let us dive a bit deeper into this topic.
What does disability insurance do?
This is the most important question to ask before you buy one of this kind. Basically, disability insurance for individualsworks like all other insurance policies but the benefits are quite different. This insurance comes into play when something happens to the life that disables you from earning further.
Suppose there is an accident and you are seriously injured. As an effect of that accident, you become unable to work. Now, where will you get the monthly paycheck from? Not getting the paycheck means you won’t be able to go on with your usual life. And that would be really frustrating for you and your family.
When a person has disability insurance for individuals, he will start getting a considerable amount of his salary until he gets well. In case he chooses the right plan, he will get the benefits till the end of his life if he gets permanently disabled. So, there is no need for him to worry about the regular expenses of life. Now you have understood the basics associated with disability insurance, let us know about the types of it.
Major types of disability insurance for individuals
Mainly, there are two types of disability insurance that one may opt for. Here in this section of the article, we are going to have a look at these types in detail.
- Long-term disability insurance: This type of disability insurance works in case of permanent injury. When people suffer injuries that have life-long effects, they need assistance till the end of their life. And this insurance gives them such benefits. But you must have additional assistance until this insurance comes into effect after the accident. This is because the waiting period for these policies is quite long. The waiting period is the duration of time after which the insurance starts paying you off.
- Short-term disability insurance: Short-term disability insurance policies are designed for providing you financial assistance when your injury makes you temporarily unable to work. These insurance plans may give you benefits for up to 2 years at most. And they come into effect quite quickly. The waiting period can be 1-14 days long.
These pieces of information may be really helpful for you in choosing the right disability insurance for individuals.