Disability Insurance Articles

How Disability Insurance Benefits Can Cover Medical Supplies

2010-11-04

Disability insurance, also commonly called disability income protection, is a type of coverage designed to pay benefits in the event the insured cannot work. Usually these policies are paid in addition to any other coverage in force and, in many cases, disability insurance benefits can be used for whatever purpose you choose. This could include anything from making a car payment or paying the rent to buying necessary medical supplies.

Disability insurance benefits can vary significantly from one insurer to another and these types of policies will also be specific as to exactly what they cover. Definitions, for example, of the term 'total disability' can change from one company to another and it's important for the consumer to read and understand his or her policy thoroughly before signing up for coverage.

This is one type of insurance where going for the policy with the cheapest premium cost could be a big mistake. It's a fairly good bet that if a disability policy is significantly less expensive to purchase than its competition then the terms of the policy are not generous and the policyholder may have a tough time collecting any real disability insurance benefits if the need arises. It's always important to understand the terms and definitions of a policy whenever you're comparing one coverage plan to another.

Health or medical insurance is carried for the purpose of protecting yourself from the costs incurred from an injury or an illness. As most people know, however, health insurance rarely, if ever, pays for all the expenses associated with doctor and hospital bills or the purchase of prescriptions or other medical supplies.

You certainly need medical insurance to protect you and your family from catastrophic financial loss in the event of a serious illness or injury but you also need additional money coming in to pay for deductibles, co-payments, etc. What about paying the house payment, the car payment or buying food?

If you incur an injury or illness which disables you for a specified amount of time spelled out in your policy, preventing you from performing your normal occupational duties, disability insurance benefits will kick in and provide a certain portion of that lost income. That's the reason this type of insurance is often referred to as income protection coverage. This insurance also normally pays you in addition to other types of insurance benefits you might be receiving.

Disability insurance is meant to protect your most valuable asset, which is your ability to earn an income. Without income you can't afford the things that you're probably already insuring such as your house and your car. Income protection is a smart move.