Types of disability insurance

By: Adrian Rocker

Disability insurance is a type of insurance that insures the beneficiary’s earned income against risks that are created by disability. Such risks include the inability of a worker to complete the core function of work. Disability insurance benefits include paid sick leave and short and long term disability benefits. There is a high rate of disabling accidents all over the worked and hence disability insurance is important. Disability insurance quotes are different from life insurance quotes. They are relatively affordable just like cheap term life insurance policies. Just like life insurance, there are different types of disability insurance policies. These policies cater to different needs of different disabled people. Traditional disability insurance policies have a limitation on the monthly benefits.

The first type of disability insurance is the individual; disability insurance. Some employers do not provide benefits in case of disability. Employees working for such employers can purchase insurance policies on their own. Some people are also self-employed and desire disability coverage. This type of disability insurance is suitable for such kinds of people. The premiums and available benefits for individual coverage will vary between insurance providers, occupations and countries. Unlike life insurance quotes, the individual disability insurance quotes are affordable and hence can be easily purchased by average income earners. Premiums tend to be higher for individual disability insurance policies that define disability in broader terms. This means that the policy would benefit in a wider range of circumstances hence the premium becomes more expensive. You can get cheap term life insurance policies together with an individual disability insurance to increase your expected benefits.

Another type of disability insurance is the high limit disability insurance. This type of insurance is limiting in its own way but highly beneficial. It ensures that the individual who is covered gets benefits amounting to 65% of the income regardless of the level of income of the individual. This type of insurance therefore limits the benefits that an individual can receive but guarantees a percentage to be received. The quotes here are variable unlike life insurance quotes which are generally standard. This type of disability insurance is not highly recommended by financial advisors because of the limiting factor in its terms. This type of insurance can also be taken together with cheap term life insurance to maximize the benefits expected. However, it is advisable to go for high-limit disability insurance only if you cannot qualify for individual disability insurance.

Another type of disability insurance is the key person disability insurance. This type provides benefits to protect companies from financial loss that may result from the loss of key employees due to disability. The company can use the benefit received to hire and train temporary employees if the disability of the key employee appears to be short-term. The quotes of such a policy are as high as the life insurance quotes because of the nature of the disability. This type of disability insurance policy is not as common as the cheap term life insurance policies and is not applied by most companies because they are costly.

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Disability insurance quotes are as high as most life insurance quotes. Disability insurance policies are not as common as most cheap term life insurance policies.

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