In case of disability of the policyholder due to illness or accidents and if the person in not in a position to work, then the person would be entitled to get a monthly income, this is called as disability insurance. It is a kind of health insurance and more people in the US are opting for this type of insurance.
The main advantage of disability insurance is that the person would be paid between 45-60% of his or her gross income when they are not in a position to work due to sickness or illness. The disability cover differs from company to company. They all have different parameters and guidelines. The amount of premium payable also differs among insurance companies.
There are 2 types of Disability Insurance covers:
1) Short-Term Disability Policies: If you buy this policy then the waiting period is 0-14 days and the benefits could be for 2 years and not more than that.
2) Long-Term Disability policies (LTD): The waiting period is several weeks to months and the maximum benefit ranges from a year to the entire life of the policyholder.
The premium payable depends upon factors like age, gender, occupation etc. If you work in an office as a front desk executive your premium payable would be low compared to a construction worker. This is because of the risks involved in the occupation. The higher the risk of injury or disability the more the premium payable. There are many ways to buy this insurance. You can consult your insurance advisor and get inputs or even get your quotes online through websites. The disability cover quotes can be availed for free from various websites or you can email and get the required information from insurance companies/websites.