A Primer on Disability Insurance
Good Disability Insurance is engineered to protect a person’s income should he or she become critically ill or injured and, as a result, be unable to work for a certain period of time. It compensates for injury to any part of the physical body, including such components as eyesight, hearing, limbs and hands, and even for mental incapacitation.
Anyone can benefit from this kind of policy protection. The important thing to keep in mind is how anyone can unexpectedly become injured or ill at any time and in any place, which can then result in the inability to perform one’s workplace responsibilities. This type of plan is often extended to an owner of small business, the self-employed, standard employees and even those who might find themselves unemployed. It has far-reaching potential to all who have it.
How it Functions
Payout levels are determined by coverage types and their levels. Policies are renewable every year and come into effect when a policyholder becomes ill or is hurt and then unable to perform work duties. When this occurs, the policyholder simply files a claim for financial compensation from the insurance plan provider. Payouts will be in effect until a policyholder is once again well enough to resume work duties.
Kinds of Coverage
This insurance policy type is generally found in two categories: Long Term or Short Term. The short term coverage ensures that the covered individual receives a regular and significant portion of his or her usual income within the first few weeks of either an illness or injury. The payment duration will range between three months and a full year depending on the coverage. With long term disability coverage, one is allowed income that helps with necessary living costs, such as meals, mortgage or rent, car payments, clothing (and so on), during a longer period of illness or injury. The insurer will usually provide these payments via the policyholder’s employer including rehab to help the policyholder more quickly get back to the job.
Disability insurance can be an enormous help to just about all, regardless of employment status. A typical person will likely face some form of disability prior to reaching 65 years, and this is why this coverage can be so important and relevant for many.