Disability can happen to anyone at any time – this impacts their ability to make a living. Disability can be a short or long term issue or a recurring illness for which people have to spend time in recovery. One way to protect oneself is to get disability insurance for this eventuality - policy holders are able to get enough income to take care of their necessities.
This insurance is usually overlooked by people – especially contractors and those who are self employed. Even those who get coverage through their employers get only 3/5ths of their salary – this amount is taxable as well, so the coverage goes down even more.
Having disability insurance is very important as the last thing one should face is a mountain of debt and medical bills. Some people choose to pay for their own insurance and it pays off in the long run. Here are a few mistakes to avoid when shopping around for insurance.
Shopping around for a policy: Getting disability insurance is very different from buying a car. One should never take price into account – what one should be aware of is that all insurance companies charge a particular amount for certain benefits and time frame as well. The only thing one will be considering is the agent. A good agent will give good advice and provide necessary services.
Becoming an expert: Disability insurance can be tricky and people interested in buying policies have to read a lot and get informed. It is always good to ask for a specimen policy to become aware the finer points and differences in policies. There are several aspects to a policy that only a licensed agent would be able to explain this and guide people on the right path.
Not accepting the policy: After consulting a specialist and figuring out what coverage to buy, it makes no sense to decline an offer from the insurance carrier. Pre-existing conditions are not covered by any insurance company – it makes no sense to reject it out of hand as the condition will probably worsen over time. There is no such thing as a perfect policy – insurance companies offer the best possible deal based on circumstances and other company offers are bound to be the same. Worst case scenario – no insurance when serious problems occur.
People should always look at the provisions in a contract and not price. Good policies will cost more but offer better benefits as well.