Disability insurance could be one of the most useful forms of insurance, yet you will rarely need to talk about it.
Disability insurance is just what it’s name implies: insurance that covers you in the event that you become disabled or ill and are unable to work. Essentially, disability insurance protects your income so that if you fell and broke both of your legs you wouldn’t be left stranded. You may not know it, but chances are good that you’ve already come across one form of disability insurance, and you may even already have limited coverage.
However, you will probably want a policy that covers more than just your commercial cards. This means that you are going to need to actually call up some insurance agents and talk to them about it. Before you do, take some of the advice below.
Don’t walk into the insurance agents office and accept whatever policy they hand you- know what it is you want. If you want to be insured if you become chronically ill or if you break a limb, let your agent know. Though your policy rate will be dependent on the amount of risk posed to the insurance company you’re better off to be over-insured as opposed to under-insured.
Many insurance policies contain riders that can often limit or even absolve your coverage. Make sure that you sit down with your agent and explain exactly what you do and do not want as a rider. For example, on many life insurance policies one of the riders is a suicide rider. This means that if the insured commits suicide within a specified period of time upon activation of the policy that the insurance company is not required to pay the benefit associated with the policy.
In the case of disability insurance a rider may exist that absolves the insurance company of its obligations if you become bedridden for more than six months, for example. So, for six months the insurance company will pay you an agreed amount per month to cover all of your expenses and lost income, but after six months they will stop paying as stated in the policy rider. Unless you are fine with that, you will want to raise notice with your agent.
There is no point in cutting costs on your policy if it means that it will only cover a select few rare circumstances. You never know what will happen to you so be prepared for the worst! You aren’t tempting fate by being insured for severe disabilities, only preparing for the worst case scenario.
Remember to bring any concerns that you have to your agent and discuss everything that is on your mind. Make sure that any agreements that are made are done so in writing, and always read the fine print.