You don’t want to think about it but one day, you may not be able to work again through illness or accident that prevents a normal life so do you really think of individual disability insurance as a good thing to have or a waste of time. Often the biggest strain when you are unable to work is that knowing you must try and recover as quickly as possible for the sake of your family, and this causes additional stress so individual disability insurance can act as a safety net whilst you are incapacitated. The chances of you being in need of individual disability insurance before the age of 65 far exceeds the possibility of death prior to this age. Unfortunately, this fact is often overlooked when life insurance coverage is being arranged. For example for a forty year old there is a greater chance of a disability that requires at least ninety days from work, than there is of dying before the age of sixty five.
Of course, when someone is seeking individual disability insurance cover, it is imperative to find the best individual disability insurance rates and plans available. Unlike life cover, individual disability insurance rates are based on the potential income lost as well as, age, occupation and general health. Many people find that they can reduce their monthly individual disability insurance premiums buy delaying when the first payment would be made to them if they were to make a claim on their individual disability insurance plan. Another option to lower the monthly premiums is put a limit on how long the payments are to be made before they stop although if you your period of incapacitation lasts longer than this, it will mean that you will have to find an alternative source of income.
Insurance company policies will differ but the majority will only pay a percentage of your lost income so it is a good idea to choose the best one for you and in this instance, the cheapest individual disability insurance may not necessarily be the best. Short term individual disability insurance income covers the first few months you are disabled and the benefits of short-term disability income insurance are many. Whereas if someone wants to claim total disability and be completely covered financially, then they will have to prove that they are unable to perform the majority of the tasks that they used to. Irrespective of the type of policy you have, payments for disability are made regularly, every week or month until the end of the incapacitation or the policy, whichever come first.
There are many issues to consider when exploring individual disability insurance which may affect the premiums and they include, in no particular order; your current occupation, whether the income is taxable, how long the benefits will be paid for and if there are any medical restrictions. Remember that every individual disability insurance policy is different and they will not all provide exactly the same benefits, including how much they will pay as a percentage of your income. The percentages vary and individual disability insurance payouts can be anywhere from 40% to 70%, so don’t neglect this important detail. It is the number one factor that will define what your income will be in case you become disabled.
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