Disability insurance

Insurance has become an important part in the life of common man providing great protection against potential losses and in turn invaluable peace of mind. Insurance can be defined as a contract or a ‘policy’ in which an insurance provider provides financial protection against any loss inquired for an individual, a business or an organization. The protection is offered in exchange for a regular payment of an amount, known as ‘premium’.

The insurance benefits for disability as well as mental health services have changed a lot in the past few years. Nowadays insurance providers have broadened their schemes to guard against almost any conceivable risk to an insured. There are numerous insurance companies which offer disability insurance and each insurance provider offers their own custom made schemes with a cover to match today’s industry needs.

Disability insurance helps to cover a part of the income of the insurer when he/she is not able to work. The law mandates the insurance providers to supply goods, facilities and services to a disabled person, including individuals with mental health problems, on terms which are unjustifiably different from those given to other people.

Disability Insurance can be broadly divided into two types – short term disability insurance and long term disability insurance. Short term disability insurance helps to cover an income for the early part of a disability and could pay reimbursement for 14 days to about two years. Long term disability insurance can replace income for a particular period of time, generally ending after five years.

The insurance providers provide two different definitions for disability which are widely used in disability policies. The first definition states that the disability prevents a person from performing the major duties of his/her occupation. While the second definition is that the disabled is unable to perform work at any profitable job. The latter type of disability insurance policy provides a residual benefit which offers the insured with a percentage of his/hr disability benefit. It is usually calculated on the percentage of income loss the sickness or injury has actually caused.

Nowadays with the help of internet virtually any transaction can be done with a few mouse clicks from home. One can easily search for any details about disability insurance policies from the thousands of insurance websites which clog the internet. Another noted advantage is that most of the disability insurance companies provide disability insurance online quotes – this helps the customers to browse various insurance providers and make a quote of his/her choice.

In a scenario where there is more than one player offering disability insurance, a lot depends on the rational of the customer in opting for the best offer among the lot. The insurance premium varies from company to company, also are the details of claims settlement process – in most cases the deductible and the extent of the replacement coverage changes from one insurer to the other. Hence, a great deal of time, energy and thought is to be made before selecting the insurer that best suits your individual needs.