Disability insurance has been into existence for many years from now. This is a type of insurance which can be referred to as income replacement insurance. But you might want to know what this 
insurance is actually about.
Disability insurance is a type of insurance in which if a person is incapacitated in any way and unable to work in his/her occupation then that person is considered disabled.
insurance is actually about.Disability insurance is a type of insurance in which if a person is incapacitated in any way and unable to work in his/her occupation then that person is considered disabled.
This disability insurance policy is non-cancel able and gives guaranteed renewable. As a result of which the disability insurance policy can’t be canceled by company except for non-payment of premiums and its policy terms can’t be altered in any way.
Elimination Period
The elimination period of the policy is the period of time one can wait before the payments of benefit begin. This period is an agreement by the contract which is selected by purchasing the policy. The elimination period may vary between 30, 60, 90 or more days. As the elimination period gets reduced the higher would be the premium. Majority of people choose an elimination period of 90 days.
Benefit Period
This period is the time when you will be paid an income during your disability. The disability insurance period may vary but most companies give a disabled person the benefit up to 2 or 5 years. As much longer the benefit period the higher would be the premium paid.
Many people become disabled for a short period of time, as many as 5 times during the lifetime. This would result in a loss of income which is very disastrous for a person. Hence disability insurance policy would prove as a secure hedge against such an eventuality. The insurance amount you would be allowed to insure yourself is between 40% and 60% of gross income.
On seeing this parameter one needs to be cautious while choosing a disability insurance period. Before signing a disability insurance one needs to know that they sign disability insurance for their own occupation and get insured only on their own occupation disability or incapability.
Elimination Period
The elimination period of the policy is the period of time one can wait before the payments of benefit begin. This period is an agreement by the contract which is selected by purchasing the policy. The elimination period may vary between 30, 60, 90 or more days. As the elimination period gets reduced the higher would be the premium. Majority of people choose an elimination period of 90 days.
Benefit Period
This period is the time when you will be paid an income during your disability. The disability insurance period may vary but most companies give a disabled person the benefit up to 2 or 5 years. As much longer the benefit period the higher would be the premium paid.
Many people become disabled for a short period of time, as many as 5 times during the lifetime. This would result in a loss of income which is very disastrous for a person. Hence disability insurance policy would prove as a secure hedge against such an eventuality. The insurance amount you would be allowed to insure yourself is between 40% and 60% of gross income.
On seeing this parameter one needs to be cautious while choosing a disability insurance period. Before signing a disability insurance one needs to know that they sign disability insurance for their own occupation and get insured only on their own occupation disability or incapability.
No comments:
Post a Comment