If you cannot make a living for yourself due to an injury or illness, disability insurance will pay a part of your income. There are so many companies that offer disability insurance. You can have a Google search near your area, and there you go. If you are suffering from an injury or an illness and thinking of taking disability insurance, there are many things to consider. Let us discuss them.
Employer-sponsored group policy or individual disability policy
When you consider taking disability insurance, you have two options: either you can get it through your employer or buy it individually. Suppose your employer provides disability insurance to you. In that case, it is either very cheap or almost free since the employer pays for most of it. But, you should know that employer group policy limits your coverage. On the other hand, a better option will be to buy an individual policy. Here you have the right to enforce your policy, and the laws may help you fight disability denials. Also, ensure the policy covers both short-term and long-term disability.
The premium of an individual policy is a bit expensive and based on various factors like health, age, occupation, etc. However, the coverage can vary in both cases; it is best to check both options to get the best coverage.
Portability
When you purchase disability insurance via your employer, if your insurance is non-portable, it will not carry forward with you if you switch jobs.
If you have a portable insurance policy, you will know that you will be covered no matter where you work. Although not many disability policies purchased through an employer are portable, if it is essential to you, consider purchasing your disability insurance.
Cost of living benefits:
Most disability insurance policies do not provide the cost of living benefits. Adding a cost of living rider to your policy is something you should consider. These benefits provide increased benefits as the cost of living increases.
Collection time:
There are some policies wherein you can start collecting 30 days after your disability claim has been filed. It is important to know the collection time, as this can help you choose the insurance company. The collection time ranges from 30 days to 600/700 days, and the latter is a big NO.
Renewal:
With the disability insurance, how long are you covered? Check the renewal provision in your disability insurance coverage. In a change in your situation, the insurance company cannot cancel your guaranteed renewable policy. However, the insurance company can still change your premium. A non-cancelable policy guarantees future premiums. The best disability insurance policies are guaranteed renewable and non-cancelable.
