What you need to know about disability insurance

Download What you need to know about disability insurance

Post on 18-Dec-2014



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<ul><li> 1. What You Need to Know About Disability Insurance </li> <li> 2. Disability insurance has gained quite a significant role and recognitionin the insurance industry. This can be attributed to the fact thatinsurance companies offering disability insurance to the general publicputs great weight on the overall health of a prospective client. Such anaction is explainable in view of the nature of a disability insurance.A disability insurance insures a person in case he or she suffers adisability, that would prevent him or her from working, due to variouscauses. Said disability may be caused by an accident, whether it bework-related or not, or a fatal illness. When an insured person suffers adisability that would prevent him or her from performing his or herwork, the disability insurance provides money to the said person tocompensate for his or her loss of income. Thus, in this kind ofinsurance, the insurance company assumes the risk that the insuredwill get injured in the future. The insurance company earns a profit byway of premiums if the insured does not suffer any disability. </li> <li> 3. Moreover, with this kind of insurance, insurance companies always make surethat the prospective client is healthy and in good physical condition. By failingto evaluate the physical condition of a prospective client, an insurancecompany runs the risk of losing a substantial amount of money since the riskthat said prospective client might get disabled or injured is very high.If it is discovered, after a thorough physical examination, that a person who istrying to qualify for an insurance policy is not healthy, an insurance companywill either refuse to enter into an insurance contract with the said person orwill increase the premium rate that the person has to pay. The latter option isexercised in order to minimize the possible losses that an insurance companymight suffer in case said person becomes disabled. Given this fact, a personwho is applying for insurance must make sure that he or she is healthy andthat she reveals any medical condition that they might have. Trying to keep ita secret from insurance companies might prove to be more troublesome. </li> <li> 4. The reason why an insurance company would want to make sure that a person ishealthy before providing them with the policy is because there are certainillnesses that are exempt from the coverage. A disability caused by a fatal illness isusually covered by a disability insurance contract. On the other hand, illnessessuch as leukemia, cancer, and other diseases that were only acquired aftersecuring the insurance contract are usually covered by disability insurance. If theinsured suffers from any of these illnesses and is subsequently incapacitated, heor she can claim for disability benefits from the insurance company.On the other hand, chronic illnesses such as asthma and other hereditary diseasesthat were acquired before the insured person secures a disability insurance arenot covered by the policy unless said diseases were made known to the insurancecompany beforehand and the latter still entered into a contract of disabilityinsurance with the insured.However, since there is a thin line between these two types of illnesses, conflictsbetween the insurance company and the insured often arise. This happens whenthe insurance company rejects the claim of the insured on the ground that thesame is not covered by the insurance policy. After the said rejection, the insuredwould usually elevate the issue to courts by way of a law suit. </li> <li> 5. Advantages of Having Disability Insurance: Among the many advantages that one would derive from applying for a disability insurance would be the financial support that would provided to ones family should something happen. This is especially so if you are the breadwinner of your family and have many people depending on you. Just take individual disability insurance for example. This is often secured by companies for their employees and would cover for an individual, financially, during the period that he or she is unable to work. To put it in simpler terms, think of this coverage as a type of protection. Did you know that according to statistics, there is at least a 30% chance that youll get disabled by the time you reach the age of 60? It may not worry you now but theres no use in waiting for it to happen. Preparing now is always the best thing to do. The same goes for people who are currently self-employed. It is important that they secure one for themselves as well.http://protection-insurance.org/what-you-need-to-know-about-disability-insurance/ </li> </ul>