Top 5 Reasons to Consider Disability Insurance
What is Disability Insurance?
What is Disability Insurance?
We often get home or car insurance to be secured in case of any misfortune, but what about your income? Aside from standard insurance plans, disability insurance is an important type of insurance everyone must have. Disability Insurance also known as disability income insurance helps the beneficiary against the risk of disability that creates a barrier to work.
Protection Against Loss of Income
Disability insurance provides financial benefits for lost income in case of inability to resume work due to permanent or temporary disability. With an income protection insurance plan, you can take care of your family’s lifestyle and needs while continuing with the same standard of living.
Provides Financial Security During Disability
Accidents or disabilities of the earning member of the family can have a huge impact on your financial condition. If you are a policy holder, then you can attain the benefits of disability insurance to secure your family in case of any mishap.
Covers Medical Expenses
If you are met with an accident that leads to disability, chances are high that you are unable to continue work for some time or even for years. Thus, disability insurance can help you pay for your medical or other essential expenses.
Supplemental Income
Life is unpredictable one has to be always prepared for any unforeseen circumstances. Disability Insurance coverage acts as a supplement income and serves your family's expenses during unfavorable circumstances.
Peace of Mind for You and Your Family
Income protection insurance plans ensure your family remains secure in case of accidents or illness. These plans offer financial security to your family in the case of an unfortunate event. It helps them to live a comfortable and financially stable life.
Types of Disability Insurance Available
Every one of us has a unique financial and medical history. As a result, the financial assistance should be as per the specific requirements. Basically, there are two types of disability insurance coverage, short-term disability insurance, and long-term disability insurance. Let’s take a look at them below.
Short-Term Disability Insurance
Short-term disability insurance, as the name implies, is an insurance plan that is provided by your employer for a short period. This insurance covers a portion of income from 3 to 6 months in case of injury or illness. It may also include additional disability benefits like paid leave.
Long-Term Disability Insurance
In Long-term disability insurance, the benefits of disability insurance are offered for a longer period, typically more 5, 10, 20 years or even until you reach retirement age, depending on your plan.. You will get only a percentage of your salary during this long-term disability insurance. You can discuss this with your employer to ensure you’re fully covered to meet your needs.
Factors to Consider When Choosing Disability Insurance
It is a wise financial decision to get disability insurance that corresponds to your needs. With plenty of options available, choosing disability insurance can be a difficult decision.
There are a few factors to consider while choosing the policy, just as there are when you make any other financial choice. Check them below:
Coverage Amount
How much disability insurance coverage do you need? You can customize your life and disability insurance coverage depending on your requirements.
How to Apply for Disability Insurance
It's important to remember that the application process for disability insurance can vary depending on the provider and the specific policy. To apply for disability insurance, follow these general steps:
Step 1: Determine Your Disability Insurance Needs
Every family has unique circumstances and financial status. There is no one policy that fits all. There are many personal factors that it depends on. Firstly, you need to go through the disability policy available. Then you need to check which best suits your needs from the options available.
-Understanding Short-Term and Long-Term Disability Insurance
Short-term (STD) and long-term (LTD) disability insurance offer Income protection and risk management in case you are met with an accident or illness. Long-term disability insurance can be purchased individually through an agent or with a group plan via the workplace; short-term disability insurance is usually purchased as part of a group plan through the workplace.
-How Much Coverage Do You Need?
The amount of disability benefits coverage that you need depends on your income and monthly expenses. The actual cost will vary depending on your background and occupation. So, you need to check factors like income, elimination period, benefit period, health and coverage.
-Choosing the Right Policy
The type of disability insurance you need is determined by your income and financial obligation. Work with a policy agent for free to get advice on the policy suitable for your needs. At “MetLife” we have Group Death & Disability Insurance with a complete suite of insurance options.
Step 2: Gather Information and Documentation
If you are interested to apply for disability benefits insurance, then you should gather the following mentioned information like personal employment and medical information at hand. It will make completing the application much easier and faster.
Personal Information
·Your date and place of birth
·The name and date of birth or age of your spouse
·Names and dates of birth of your minor children
·Your bank or other financial institution's Routing Transit Number [more info] and the account number, if you want the benefits electronically deposited.
Employment and Income Information
·Details about your work, designation & monthly salary
·The amount of money earned last year and this year
·The name and address of your employer(s) for this year and last year
Medical Information
·Name, address, and phone number of someone who knows about your medical conditions and can help with your application
·Detailed information about your medical illnesses, injuries, or conditions:
·Names, addresses, phone numbers, patient ID numbers, and dates of treatment for all doctors, hospitals, and clinics
·Names of medicines you are taking and who prescribed them; and
·Names and dates of medical test details
Step 3: Contact a Disability Insurance Provider
If you have all the above details, then you need to search for a reliable disability insurance provider who can help you with the process.
Research Disability Insurance Providers
Search online or get references from your friends for the disability insurance provider so that you get the insurance at a company or agent which you can trust. Check their financials through their annual reports and credit ratings. “MetLife” is the largest life insurer in the country serving millions of customers.
Contact the Provider and Request a Quote
Contact the agent or the company immediately and ask all the questions in the insurance application form you have in your mind. Also, ask for the insurance policies and their plans in detail.
Review the Policy and Ask Questions
Carefully read the insurance application form, as inaccurate information can create unwarranted issues in the claims process. If you have any questions, ask the service provider.
Step 4: Complete the Application and Underwriting Process
While filling out the application you need to provide all the essential personal, medical, and employment details mentioned above and then proceed with the underwriting process for the submission of the application.
Filling Out the Application
You need to fill in all the information mentioned above or asked in the application form for the disability insurance policy.
The Underwriting Process
After the submission of the application for the disability insurance policy, the underwriting process will take place. You need to complete all the steps to ensure the successful completion of the application.
Providing Additional Information
You have to provide all the additional details and documents to prove your eligibility for the disability insurance policy.
Step 5: Receive Your Disability Insurance Policy
Get all the crucial information like policy terms and conditions, payment, premiums, and renewing dates and procedures.
Policy Terms and Conditions
Go through the policy terms and conditions to know all the details. You will get detailed terms, conditions, and exclusions in the contract of insurance.
Payment and Premium Information
Grab all the information about the payment, the premium amount you have to pay, maturity, disability benefits, and any other amount you may receive from your insurance provider.
Renewing or Updating Your Policy
Also, enquire about the procedure of renewing or updating the policy, the documents required, and the payment you must make for updating the policy. It will help save you time and avoid confusion.
Conclusion
Disability insurance is an investment that offers income protection & risk management when you get sick or are injured and cannot work. It will help to maintain a normal lifestyle by providing short-term disability benefits, long-term disability benefits, and paid sick leaves. But before you make your decision you should consult with the policy advisor for a better understanding of the plans available and which one will be suitable for your requirements.