Understanding Disability Insurance
Disability Insurance is a kind of policy that is designed to protect a person’s income should he or she become critically ill or injured and, as a result, become 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 sickness.
All can be helped from this kind of policy protection. The wakeup call here is that anyone can unexpectedly become injured or sick any time and any place, which can have the consequence of causing a person unable to perform employment duties. This coverage is often offered to an owner of his or her own business, the self-employed, regular employees and even the unemployed. It can offer terrific protections to all who carry it.
How it Operates
Amount of the pay-outs are determined by the coverage choices made. Policies are renewable every year and come into effect when a policyholder becomes ill or injured and unable to perform his or her work responsibilities. When this occurs, the policyholder files a claim for compensation from the insurance company. Compensation remains in effect until the policyholder is once again well enough to go back to work.
These insurance policies are generally found to be in two categories: Long Term or Short Term. The short-term coverage helps the covered person receive a regular and significant portion of his or her normal income within the first half month or so of either a sickness or injury. The payment duration will range between three months and a year varying on the coverage chosen. With long term disability coverage, one is provided income that enables the paying of living costs, like food, payments for mortgage and car loans, clothing and more, all during a longer period of illness or injury.
Disability insurance can be a big benefit to just about all, no matter employment status. A person can often become disabled before the age of 65 and this is why this coverage is so important.