Things To Consider While Choosing Disability Insurance Policy

Online, July 29, 2010 (Newswire.com) - With the passage of time, people have realized the importance of insurance whether it's life insurance, vehicle insurance of building insurance. Nowadays, people get insurance for their body parts like eyes or voice insurance. However, disability insurance is most sought after insurance among all types of insurance in market presently. The reason for its growing popularity is pretty simple and very much obvious: it provides financial assistance when one is unable to attend work due to sickness or some injury.

Disability is not a new thing, as it can happen to anyone of us. According to a report,one in three person gets disabled at the age of 35 and they lose at least three months of time as disabled by the age of 65. The report further states that one in ten persons may face disability permanently. Taking the aforesaid report into account, the insurance certainly evolves as an effective tool to cover medical and rehabilitation expenses.

Disability insurance can be classified as following: short term disability insurance and long term disability insurance. As the term suggests, long term disability covers a period of over six months until retirement. The insurance companies generally provide 75-80 percent of your income on a tax-free basis. Similarly, short term disability covers 40-60 per cent for income for short term disabilities.

People have a lot of options while choosing a disability insurance policy. Either you can avail policy offered by the government or private companies. You also have to choice to get policy from your employers. As per the trend, most of the people get disability
insurance services from their employers. Having said that, one should be very careful while choosing the policy.

Go for the policy, which includes a clause that ensures that insurance company cannot annul your policy or raise the premium limit. In such case, chose non-cancelable policy or guaranteed renewable policy. Such policies will safeguard your interests to the maximum. Conditionally renewable polices are also decent options.

Don't forget to consider residual insurance while choosing a policy. Such insurance covers falling ill due to hardwork at job or suffering injury while working.

Study the policy clauses carefully, especially about elimination and policy exclusions. Go through clauses on automatic increase rider, social-insurance-substitute-rider and residual-disability insurance. Don't forget to match the clauses with your cost of living. This will help you get a genuine compensation for your loss during disability. The process of studying, analyzing and consulting others may be time consuming, but, it's really worth. After all its better to be late than sorry.