In an unstable economy where people are being laid off right and left, having a way to protect yourself financially if you lose your job becomes more important than ever. There are many different kinds of insurance that can cover you in the event of unemployment, but not all of these will cover unemployment due to accident or injury. Disability insurance is a special type of insurance that can protect you financially if you suffer a debilitating accident or illness that leaves you in a condition where you are unable to continue working. Disabilityinsurancehelp.org aims to tell you everything you need to know about the various types of disability insurance.
What are the different kinds of disability insurance out there?
There are several different kinds of disability insurance available. Some of these are open policies that you can buy from a private insurer. Others are integrated into the insurance package offered to you by your employer. The type of insurance that you qualify for will depend on a number of factors, but here is a basic rundown on the different disability insurance policies out there.
- Individual disability insurance - Not everyone qualifies for disability insurance that is paid by their employer. In some cases you will need to have been working for a considerable amount of time in order to obtain disability insurance from your employer and in some cases the amount you can claim may not be enough to cover your expenses. In these situations, purchasing individual disability insurance is a good idea. Individual disability insurance can be purchased from a wide range of different insurance providers out there, and the amount of money you can claim will depend primarily on the amount of money you are willing to spend. In general, the higher your premiums are, the more your insurance claim will offer. However, there are other factors that influence the rate of your premiums and these will be explained later on in this guide.
- Disability insurance supplied by the employer - Naturally, receiving an injury on the job is a key factor in disability insurance. There are a lot of employers out there that will offer disability insurance to their employees as part of an insurance or benefits package. This insurance is usually quite basic and covers only minimal expenses, so a lot of people generally prefer to purchase individual disability insurance in combination with the insurance provided to them by their employers.
- Other kinds of disability insurance - There are other types of disability insurance and these include business overhead expense insurance, key-person insurance, and high limit disability insurance. Business overhead expense insurance offers financial compensation for business expenses in the event that the owner of the business becomes disabled. This insurance offers a wide range of benefits for monthly business expenses. Key-person insurance offers benefits that can be obtained in the event that a key employee can no longer work due to an injury. With this kind of insurance, cash flow will be paid out to help the company continue to function and profit if an important employee is lost. High-limit insurance is a special kind of disability insurance that is not capped so individuals can claim at least 65% of their income.
Factors that influence your premiums
Disability insurance is not always cheap, and under many circumstances insurance providers will find ways to raise your premiums. This usually happens when you are deemed to be a high risk individual, and in order to determine this these insurance providers will run an assessment of your situation. You will be required to submit a lot of personal information that will provide your insurer with details like whether or not you suffered a debilitating injury or illness in the past. If you are considered to not be in very good health, you will be deemed a higher risk to the insurance provider, and will probably have to pay higher premiums. This is especially true in the case of individual insurance providers.
How can I find good disability insurance?
To find a form of disability insurance that is good for your situation, you should always set aside some time for insurance shopping and quote comparison. There are a lot of different insurance providers out there and a lot of variation in the kind of coverage you can get and also the amount of money you can expect to pay on premiums. You can use quote comparison tools to help you gather up a large list of insurance providers offering disability insurance and then compare prices between each of these. The one that stands out from the rest by offering the lowest rates with the best coverage is the option that you can go for. Remember that disability insurance is paid out in different ways and there is usually a waiting period between the moment you make your claim and the moment you start to receive money. The longer this waiting period is, the lower your premiums will be.