Disability Insurance Articles
The Advantages Of Individual Disability Insurance Policies
2010-05-25
Disability insurance is a protection against loss of income due to disabilities caused by an accident or other events. When you obtain disability insurance, you transfer the risks that you take in your daily occupation to the insurer. Online insurance rates can be obtained for disability insurance once you provide the details of your age, occupation and coveragw required. Types of disability insurance can vary and you can get a policy tailor made to your own requirement.
Most people who are working are generally covered with group disability insurance policies. There are quite a few downsides to these policies that need to be looked at. Most group disability insurance policies will cover only a part of your income. It is not very comfortable living on that reduced income and an additional personal disability insurance coverage would easily make up for the deficiency. It is also certain that outgoings during a disability increase due to medical and other expenses and the limited income that you get from group policies may further cause your income to depreciate. There is a misconception that disabilities are covered by Social Security. But in fact Social Security only caters for total disability. When there is a partial disability it is assumed that you are employable and therefore not eligible for the benefits.
An individual disability insurance policy ensures that disability is covered in case you are unable to perform the normal occupation that you have and the policy does not expect you to take on other jobs. Taking out such policies at a young age reduces premiums. An individual disability insurance policy is portable and can be with you for life. Group policies on the contrary are limited to the place of employment and will cease as soon as you leave the job. Income from individual disability policies are also not taxable, as premiums have been paid for from income that has already been taxed. An individual disability insurance policy should be taken in such away that it offsets any disadvantages of a group policy or other coverage that you may have from your job.
One can, of course, depend on emergency funds created for times when you could have a disability. But a long term disability can completely deplete such a fund and have you falling back on other savings. It is far better to have individual disability insurance which you can fall back on in case of an accident. By not having individual disability insurance, one risks a reduction of assets. The insurance that you have thus protects your assets while at the same time giving you the cushion of an income during the period of the disability. Getting online insurance rates can help you find affordable policies.