Income disability insurance or also called disability insurance protects you if you cannot work for several months or more due to injury or disability.
The income offered by an insurance policy will help you to meet your daily needs and finance hospital care to restore health – this policy has provisions usually valid until you reach 65 or even die.
Why do you need insurance? Hasn’t the government provided benefits if you are disabled?
Not everyone meets the requirements to receive benefits. Therefore disability insurance can be a solution to overcome your financial problems when facing a disaster unable to work anymore. If you get benefits from this insurance you can also get benefits from the government.
still confused with disability insurance policy? you can contact erisa lawyer and you can consult for free to find out about the terms of the disability insurance policy.
Definition of disability
Insurance companies have several definitions of disability. It is important to be able to understand the definition because it can have an impact on the benefits you get.
- Total disability: That is, you cannot work at all
- Partial disability: That is, you cannot do all the tasks at work, but can still do part of it.
- Permanent disability: This means that doctors cannot guarantee you can recover from injury or disability. The role disability can be total or partial. If you experience a serious car accident and become paralyzed from neck to leg, you are included in total and permanent disability. If you are paralyzed from the waist to the feet, you will be included in partial and permanent disability.
- Temporary disability: That is a disability that is most likely to be cured. Perhaps you have a serious accident and will be operated and treated for one month, and within a few years, the doctor has allowed you to return to work. Temporary disability includes total and partial disability.
Types of disability policies
The insurance company in paying the sum assured depends on what type of disability you experience and what insurance coverage you buy. Here are some types of disability insurance policies:
- All work policies: Only provide protection if you cannot do any work. This policy is cheaper because the coverage is small.
- Specific employment policy: Will provide coverage if you cannot work on a job that is suitable for your education.
- Self-employment policy: Will provide coverage if you are disabled and will get insurance coverage if you cannot carry out your duties in your main job. This policy is more expensive because the benefits are many.
- Separate policy: Provides short-term coverage for the main job, and long term for any work.