It’s a good idea to be financially prepared for unforeseen mishaps, such as an accident, that could result in disability. What happens if your savings aren’t sufficient to replace your income under these circumstances? Here’s where Disability Insurance will be of vital importance in the event that you are physically incapacitated and unable to work for a living. Let us tell you all about Disability Insurance.
What is Disability Insurance?
Disability Insurance provides the insured person with an income replacement in case they become handicapped due to an accident and cannot work for an extended period of time.
Who should get Disability Insurance?
Humpty Dumpty didn’t get Disability Insurance and we all know what happened to him. If you think that you’re prone to accidents, Disability Insurance should be on top of your list. But even if you are extra cautious, it would definitely not hurt to stay prepared for any eventuality. Do you work at a job where the chances of being injured (and possibly disabled) are higher? Then you should consider getting Disability Insurance.
No. Life Insurance or Health Insurance doesn’t make the cut
Banish the misguided notion that Life Insurance or Health Insurance will safeguard you from all uncertainties that may come your way. Life Insurance will protect your dependents in the event that you are not around and Health Insurance takes care of the finances when it comes to your health issues. But disability? That’s a whole different ball game.
Now that we’ve got you listening, here are your options.
- Personal Accident Policy
A Personal Accident Insurance is a policy that provides an insured person a monetary sum as compensation in case the insured suffers a disability due to an accident. A Personal Accident policy covers death, partial or total disability, mutilation and bodily injury among others. These policies are usually provided by General Insurance companies.
- Personal Accident Rider with your Car Insurance policy
Get coverage up to Rs. 2 lakh for damage or injury caused to the driver when travelling, boarding or alighting from a car. Many insurance providers also offer optional accidental cover for co-passengers. This rider will generally cover accidental death, temporary partial disability and permanent partial or total disability caused as a result of road accidents.
- Disability Rider on your Life Insurance Policy
You can choose to add a disability rider to your existing Life Insurance policy. With a rider added to your Life Insurance policy, you can get a lump sum amount as a benefit in case you are disabled and it hampers your ability to earn an income. This lump sum amount paid to you and your loved ones can help tide you over these difficult times.
Remember, a disability rider on a Life Insurance policy will remain in force only for the term of the Life Insurance policy.
- Income Protection Plans
Income Protection Plans offer you an increasing monthly payout for the duration that the insured person is disabled. It also provides a lump sum amount that is paid when the disability occurs. The lump sum amount paid will cover any immediate expenses after the mishap. The monthly payments would serve as a replacement to your income.
Additional Reading: More People Are Buying Insurance
Thinking about getting Disability Insurance? Before you do that, it might be a good idea to check if your Health and Life Insurance policies are in place.