Disability insurance insures the policyholder's earned income against the risk that disability makes impossible. In other words, it is the kind of insurance which provides for a monthly income in case the policyholder is unable to work due to an illness or accident.
Such payable amount is a percentage of income or as a set dollar amount which is paid weekly or monthly. It is the insurance policy which defines the date from which the payment starts after the disability and the date when it finishes. There are various kinds of disability insurance contracts which are available in the market. Many companies also offer such plans in the form of group health package and from private insurers. The employees face a high degree of probability of meeting with an accident at the workplace. Therefore, it is important for the companies to offer disability insurance. Therefore, if you are interested in an insurance agent career, use the professional cv writers services to write a quality resume. Incapacitating injuries or illnesses that come with jobs can also be covered by worker's compensation. It is important to have disability insurance especially in the case where one has a hazardous job or is prone to illness. Various public sector programs such as Social Security and State Disability Insurance programs are also available in the market. There are special Federally Sanctioned programs for veterans, federal civil servants, members of armed forces and coal miners. The costs of premiums also vary depending on the policy and from one provider to another. From the policyholder's point of view, longer benefit periods are accompanied by higher premiums, which is further dependent on whether the disability was caused due to accident or illness. Disability insurance helps in balancing the personal earnings and expenses which suddenly increase due to the accident or illness. Basically there are two types of disability policies which are available. The short term disability policy is the one which has a waiting period from 0 to 14 days and the maximum benefit period which cannot exceed two years. The long-term disability policy on the other hand, has a waiting period of several weeks to several months with the benefit period extending from few years to the whole life of the policyholder. The most common and expensive feature of the disability insurance is non-cancelable. The non-cancelable policy guarantees the premium payment for whole life of the policyholder once it is issued. The insurance company cannot cancel the contract unless the insured fails to pay for the premium even after the grace period. The policyholder has the benefit of renewing the policy every year with the same amount of premium and no reductions in the benefits. The other important feature offered under the disability policies is guaranteed renewable. Under a guaranteed renewable policy the insurance company cannot cancel the policy however; it can increase the amount of premiums on a class basis so as to reflect its claims experience. This type of insurance policy is gaining popularity due to the savings in premiums it provides because of being less expensive than non-cancelable policy.
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