Disability Insurance Articles

3 Tips For Buying A New Disability Insurance Policy

2010-10-30

Every day, people are injured both on and off the job. In many cases, the injuries they sustain are severe enough to prevent them from returning to work, either for a temporary period or permanently. This can result in loss of wages and therefore the ability to pay for every day expenses such as groceries, bills, and a mortgage. By purchasing a new disability insurance policy, you will be covered financially if you are unexpectedly injured. A disability insurance policy can be purchased individually or through a group policy from a place of employment.

A new disability insurance policy will cover both short-term and long-term disability. It can also cover sick leave from a position for a certain period of time. This will help recover lost wages. Some injuries may require a short period of time away from work while the person recovers. Other injuries may be considered catastrophic and prevent a person from ever returning to work.

Premiums for a disability insurance policy can be affected by a person's lifestyle and type of employment. For example, if a person regularly participates in dangerous or hazardous activities such as rock climbing, speed racing, or skydiving, premiums for this insurance will be higher. As well, if a person is employed in an industry that poses health risks or high risk of becoming injured, the premiums will increase.

Shopping for a disability insurance policy doesn't have to be difficult and confusing. Your insurance agent will readily explain all inclusions and exclusions. You should ensure that the policy will cover you up until the age of 65, which is generally retirement age. You should also inquire about additional options such as an extension in waiting period, a cost of living adjustment, and a future purchase option.

There are disability insurance policies available for those who are self-employed as well as those who work for an employer. If you are self-employed and become injured, depending on the job that you do, you may or may not be able to return to work. This is especially true if your job is physically demanding or requires a high amount of mobility. If self-employed, you may want to look at an individual plan rather than a group plan. The main difference is the percentage of wages that are paid by the disability benefit. Generally, an individual plan will pay a higher percentage than a group plan.

Always ask your insurance agent to explain the different options available to you with disability insurance. Not everyone has the same financial or insurance needs and you want to be sure that the plan you purchase is the best one for you.