Disability insurance is insurance coverage which gives the insured party a steady income in case they are unable to work due to an accident. Finding the right kind of disability insurance can become difficult if one is considering it for the first time, especially in today’s market. There are quite a few carries to choose from and here are a few tips to make the best possible decision.
Checking the financial statements: Make sure that the insurance carrier that you buy disability insurance from is financially stable and is rated high amongst insurance carriers. A solid financial footing will ensure that the company is in business for a long time and able to pay on claims filed by customers.
Check definition of Total Disability: There may come a time when one falls sick and needs the compensation. The amount on a claim that a person can file will depend on the definition of disability on the policy. Make sure to understand the definitions well and accordingly buy, based on occupation and need.
Discounts: Not every policy may be available at a discount – some of the easiest discounts to come by are for non smokers and preferred risk. It pays to check if any other association discounts can be availed of.
Residual Disability Benefits: Some insurance carriers may offer partial or residual benefit as a rider as a part of the contract. This is an important one to have as illnesses can get worse over time and these benefits are needed.
How much to spend: Most disability insurance policies will cost up to 3% of a person’s annual income. The premium one pays will reflect the level of coverage – the price also depends of factors like occupation, age, health, state, work history, amount of required coverage and riders on the policy.
Evaluating the agent: Just because an Agent sells insurance doesn’t mean he is familiar with disability insurance. It is always a good idea to get a couple of different opinions before buying.
Do Research: Disability insurance can be a tricky subject – it becomes necessary to do a lot research to understand what one needs. There are many disability insurance agents to be found online, as is information.
Considering how many people live with disabilities, having this insurance coverage does help people to defray their day to day expenses and live a life as close to normal as possible.