There are tons of options available when choosing amongst the companies that offer disability insurance. It can be daunting to decide which option works the best for you. The policy you choose decides how well-maintained your life will be even when you are disabled and cannot work.
Below are listed a few things to consider when choosing a disability policy-
A] The Definition of Disability
Disability is quite precisely defined by insurance providers and this definition varies depending on the insurer. In generality, it begins with the standard that anyone who is unable to work at his own company due to disability is liable for the benefits. This is termed own-occupation. Later, if one is unable to perform any work at all; not even other jobs, it comes under the category of any occupation. This is the reason why delving into the definition is the most crucial when choosing a policy.
Premiums are the amount you have to pay for a policy. These vary too. You can get a guaranteed renewal which allows you to renew without any changes in the monetary coverage but the premium can fluctuate. Another option is a Non-Cancellable policy where coverage and premium remain constant but premiums have to be paid punctually.
The sole purpose of using the insurance is to fulfill your needs. How much monetary coverage a policy provides monthly is of course the most important element to consider. The benefit offered should cover your household expenses, treatment of disability, and the future.
Some policies are applicable only until you work in a particular organization. This makes them non-portable which implies if you happen to change your job; the policy is no longer pertinent. Having a portable policy keeps you relieved that you’ll be covered no matter what. Hence, if you tend to change jobs, look into policies that are portable.
E] Collection time
This incorporates how long after your claims approval does your regular coverage begins. It is also termed an elimination period. With some policies, within 30 days you can start collecting it and with some, it can take up to 700 days. Choosing the policy will decide the collection time for you.
Few other aspects to consider include coverage changes, residual benefits, future increases, individual or group policy, etc. Since disability insurance is the only way to ensure your future goes well even if disabled, one needs to be careful when choosing the policy.