Permanent Disability Insurance – Considerations To Make Before Purchase

permanent-disability-insurance-example1 While most workers recover from job injuries, some continue to experience various medical problems. Permanent disability insurance is meant to protect you from such situations; a lump sum of money is paid to you based on your insurance policy. Permanent disability could occur as a result of a serious accident or illness, which might mean that you would be unable to work and earn a living as you normally would. If this happens to you, you may be eligible for permanent disability benefits, click here to know more.

Permanent disability

Total permanent disability is a phrase that is common in the insurance industry. It generally refers to the inability to work in your own or any occupation for which you are suited. A permanent disability is one that remains throughout your lifetime or one that will most likely continue indefinitely. Typical definitions usually include the loss of eyes, both arms, and both legs. You may also be considered permanently disabled if you are absent from work for a period of 6 months due to an accident or illness. Disability insurance can be obtained individually, usually as part of your life insurance package, as worker’s compensation or separately.

Policies

There are different types of permanent disability insurance policies. You can choose a policy that pays out if you cannot work in any occupation for which you are reasonably qualified. Such a payout would require medical verification to establish your eligibility. You could also take out a policy that pays out in case you are unable to work in your own occupation. You would not be expected to take on a different role within your field, but the premium payments may be higher. Homemakers could also benefit from permanent disability benefits if they are unable to continue with their normal domestic duties.

The cost of permanent disability insurance will depend on the level of protection you want. It is important to ensure that the benefit you receive will adequately cover all your financial needs and commitments. It is also important to check the exclusions and restrictions so you can determine what the policy does or does not cover. If you have genetic or physical ailments in your family history, this could translate to higher premiums. Lifestyle choices such as smoking, drinking or participating in high risk activities on a regular basis could also impact your premium amounts.

Compare providers

Once you know what permanent disability insurance entails, you can start obtaining and comparing quotes from different insurers to find the most suitable policy. If you already have a life insurance policy with a certain provider, you can combine your disability insurance with it for a slight increase in your premiums, or get a discount for multiple products.

If you have a family that relies on your income, your disability insurance cover should be based on the impact they would have if you could no longer earn a living. In addition, while most single people opt out of life insurance because they do not have dependents, permanent disability insurance should be considered. This is because you will have to find means to look after yourself and pay your medical bills in case of total permanent disability. You can also get information about total and permanent disability payout on this page.

Other Related TPD Insurance Blog Posts: