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What is disability insurance?

Disability insurance works as income protection and can help you and your family enjoy a comfortable standard of living. Consider a scenario where you suffer a temporary disability that prevents you from enjoying the standard of living you were used to enjoying. With the proper protection in place, you can continue to enjoy a similar lifestyle with the help of disability insurance and not suffer financial hardships. Your disability insurance company will provide you with planned coverage to ensure that you do not have to make changes to your lifestyle to accommodate the loss in income.

Some of the essential features of disability insurance are as follows:

  1. How does disability insurance work?
  2. Who requires disability insurance?
  3. What is covered in disability insurance?
  4. What is short-term disability insurance?
  5. What is long-term disability insurance?

How does disability insurance work?

Disability insurance is often the most misunderstood form of insurance, and young people feel that they do not require to purchase this particular type of insurance. But if you suddenly suffer from a debilitating physical problem that results in loss of income, then you might have to compromise on your lifestyle. However, with the help of disability insurance, you can prevent it from happening. If you suddenly suffer from a significant injury that prevents you from working. This can get reflected in your paycheck, and you will be earning less than usual. If you have disability insurance, then a part of your paycheck will be covered by your disability payments. The coverage provided by your insurance will start when you file your claim and start paying you based on your plan for the disability that you have suffered.

Who requires disability insurance?

Any working individual can purchase disability insurance. You need to ensure that you do not have a disability when you apply for the insurance. If you are working, then you should apply for disability insurance. You can apply for coverage as an individual or check if your company offers group insurance. In group insurance, you need to remember that the coverage will be applicable as long as you work for the company. When you change your place of employment, usually, your coverage will stop with the same policy. Hence, it would be best if you opted for individual coverage. It is necessary to ensure that the coverage provides you with coverage for disabilities that you might suffer.

While providing you with a policy, the insurer will take into consideration the following factors:

  • Your present health conditions.
  • Check if you have consumed tobacco in the past or you consume tobacco in the present.
  • Your family medical history.
  • The insurance company may ask for your medical history and ask you to undergo blood and urine tests.
  • The insurance company will also check your present height and weight.

All of these results need to be evaluated before the insurance company can provide disability insurance. Nevertheless, it should not deter you from purchasing disability insurance to protect you and your family in an emergency if you are healthy.

What is covered in disability insurance?

Depending on the type of insurance policy you have purchased, you will get coverage from your disability insurance. You can get partial or complete coverage depending upon the disability that you have suffered. Say, for instance, if you have suffered a severe injury that has resulted in the loss of hearing of the use of a limb and this is a permanent disability, then you might receive presumptive disability coverage. In this case, the insurance company presumes that you will not be able to return to work, and hence, you will need extensive coverage. If partially disabled, the coverage is generally the loss of income for a limited period, and then the insurance company will provide coverage for loss of income for that period.

What is short-term disability insurance?

Short-term disability insurance is given to individuals who suffer income loss due to a physical disability for a short period. The insurance coverage can range from weeks to months. It usually takes a few weeks for the insurance checks to start coming, and this insurance coverage is provided with the expectations that the policyholder can return to work soon. In the case of short-term disability insurance, the objective is to help the policyholder overcome the issues faced by the disability that prevents them from working as before. With the help of the insurance payments, he can continue to maintain the standard of living they had earlier, and once they have overcome the disability, they can resume work.

What is long-term disability insurance?

In the case of long-term disability insurance, the expectation is that the employee would not be able to return to work for an extended period. In such a scenario, the insurance payments would continue to come in for five to ten years or longer, depending upon the type of insurance you purchased. This insurance usually covers cases such as injuries suffered during work or severe diseases like Musculoskeletal disorders. In such cases, employees are not expected to return to work, and insurance payments are necessary to help them maintain a certain standard of living.

Disability insurance can play a crucial role in securing your financial future. It is difficult to say when you might become disabled, and you might not earn the steady income you are used to enjoying. Additionally, ensuring your most important asset, which is your income is necessary, and your disability income will help you do so. If you live in Alberta, BC or Nova Scotia and are looking for suitable support regarding disability insurance, consider getting in touch with us at Next Level Insurance. You can also check our services by visiting our website:  nextlevelinsurance, Our company experts, are here to resolve all your queries regarding disability insurance. So if you have any questions, do not hesitate to give us a call right away.

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