Insurance Advice Guide

Disability insurance provides cover to the disable and gives them a source for making a living. Disability insurance could be provided the government or the by the employers of the disabled. Mostly the disability insurance covers upto 60% of the total earnings. Disability insurance provides payment to the insured, which otherwise, he would have earned through his normal source of livelihood.

Disability insurance provided by the employers is also known as worker�s compensation insurance. This could be long term or short term. Short-term disability insurance is in the form of short term insurance, sick leave or sometimes both. Long-term disability insurance, which could be for 6 months or more, could get group long term disability insurance.



Renewing disability insurance is very important. There are three kinds of renewabiliy in any disability insurance. They are non-cancelable and guaranteed renewable; guaranteed renewable; conditionally renewable insurance.

Non cancelable policy is one where, the policy, premium, monetary benefits and all clauses cannot be changed once they are framed. The company cannot change anything that has already been agreed upon. Guaranteed Renewable policy also suggests that there can be no changes in a policy, but if there is, then they can change.. Some companies opt for this because they can slightly modify the premium rates or period. Conditionally renewable policies can be renewed only when a certain condition is met. It is better to avoid these kinds of policies.

Residual claim in cases of disability insurance is of two types - suffering a loss of time and duties and suffering a loss of income of atleast 20%. The elimination period in a disability insurance is the period between the onset of disability and the period when one is eligible for benefit. If the elimination period is short, the premium rates are higher. The longest elimination period available is 720 days.

While opting for disability insurance, the insured should analyse if any worker�s compensation is due from his previous employer. If that is the case, the insured must try to claim this first because it is much cheaper than opting for disability insurance and paying the premium for the same.