Disability Insurance

 What is Disability Insurance and what does it cover?

First thing’s first, what exactly is disability insurance?

A disability insurance plan is a form of insurance coverage that pays out in the event that you suffer a disabling injury or illness. It is acts as financial assistance given out when an injury prevents the recipient from working. This differs from worker’s compensation in one critical way.

While employee compensation can only be filed for injuries that occur during work, disability insurance covers any injury that prevents you from working.

Disability Insurance Coverage

Insurance policies offer a lot of potential add-ons and riders. Before buying any type of policy, it’s best to familiarize with some of these policies and what they do. Here are just a few of them:

• Own Occupation: This rider ensures that you will get benefits if you are unable to work in your usual profession. This means that you can’t be denied because you technically could work in some professions.
• Future Increase: This rider allows you to invest more into your insurance plan so it pays out more should you suffer a disabling injury or sickness later on.
• Lifetime Extension: This means that your benefits won’t stop if you reach 65 years of age or retire.
• Accidental Death Benefit: This rider makes it so that if an injury or illness kills you, or even lose your eyesight, hearing and limbs, your loved ones will receive a higher payout.
• Automatic Benefits Increase: This rider causes your coverage to rise as your salary does. Keep in mind, this doesn’t necessarily have to do with the cost of living. Simply put, higher-paying jobs will provide more insurance.
• Cost of Living Adjustment: This means that your coverage will increase as rent and other prices do so that you don’t find yourself needing more than you’re getting paid.