Disability Insurance

Many of us have a range of financial duties and obligations that we are responsible for, such as everyday household expenses, mortgage, rent or retirement savings. But, fulfilling all your financial commitments will become a distant dream if the earning member of the family loses the ability to earn because of a disability. In such cases, a disability insurance will replace a portion of your income. A duration of a disability can be either long term or short term and can render a person unable to work. Also, a disability can be caused due to a variety of causes including mental health issue, injury or a serious illness. Usually, benefits are provided on a monthly basis so the policyholder can continue meeting their regular expenses and also can maintain their standard of living.

Disability Insurance Policy Inclusions:

Here are some of the events under which a disability income is insurance might be offered.

1. The definition of total disability usually refers to "the inability to perform every and any duty of own occupation" or "the inability to carry out the substantial and material duties of occupation".
2. A residual disability is defined as "a result of an injury or a sickness, the loss of earning equal to at least a pre mentioned percentage of pre disability earnings".
3. Some disabilities automatically classify the insured as totally disabled. Such disabilities are also referred to as presumptive disabilities and include loss of hearing and speech, permanent blindness, total blindness, loss of two limbs etc.
4. When the insured becomes disabled, he has to wait for a defined period of time before receiving benefits from disability insurance policy. This period influences the premium amount for disability insurance, if you choose a shorter waiting period, the premium might be higher.
5. To make sure that you have an incentive to come back to work after the disability period, the insurance covers only a portion of your normal earnings.
6. Some insurers also offer a waiver of premium in their base coverage. Select insurance companies offer waiver of premium as a separate rider.

Disability Insurance Exclusions:

1. Certain illnesses or causes of accident may be excluded from the disability income insurance policy.
2. General exclusions include injuries and disabilities caused by war or accident, aircraft accidents, normal pregnancy and suicide attempts.
3. Your disability insurance might exclude a pre existing medical condition.
4. Loss of professional license or occupational certificate
5. Any period of disability during which the insured is incarcerated.

Disability Insurance Claim Process:

Given below is a general claims process for disability income insurance.

1. If the insured faces an illness or a critical injury, deeming him unfit to continue occupation as before, he must contact the insurer immediately to check if his condition is covered by the policy.
2. If the condition is covered, the insured must procure a claims form and submit it with all required documents like address proof, identity proof, occupation / business proof and a copy of illness diagnosis. Other documents might be asked for, depending on the case.
3. After all required documents are submitted, the insurance company will investigate the claim and the claim will be approved or rejected.