Most disability insurance policies replace a percentage of the previous earnings, generally between fifty and seventy per cent with a monthly limit.
Individuals can choose between a policy that covers a certain period of time - such as four or five years - or a policy able to cover the period between the moment of getting it and the time of retirement. As long as the covered period increases, the monthly rate does it to.
An important thing to consider is that payments of the policy's benefits can be delayed for three to four months from the moment of considering disability. The elimination process takes ninety days to fulfill requirements to be declared disable, and the first payment is usually effected one month after that period. Individuals can choose a policy that considers a shorter elimination period, but as expected, they are more expensive than the traditional ones.
The concept that insurance companies manage regarding what they consider as disability tends to be very strict, making it more difficult to fall in that category and for that matter getting payment for the benefits. Some policies establish for example that if the person can do any kind of job, even one that provides smaller earnings than the previous one, he is not disabled. The most expensive options are the ones that pay benefits if the person can not do the professional job that they used to do.
Before contracting an insurance policy, the person must be very sure about how they are covered, and they should also read the fine print. Many policies refuse to cover a disability that might be considered a result of previously existing diseases. When considering the obtention of a policy, it is recommendable to ask employers if they offer this kind of package.
Collective policies are generally cheaper than the individual ones but the main disadvantage of this is that when people change their jobs, they lose the policy. Individuals can also do a little research on the internet in order to have a complete idea of what products are available on the market and which companies provide them. The best idea is to compare the cost of the protection and the needs of the applicant in order to get a personalized policy.
Why You Need Disability Insurance
Most people do not feel comfortable when thinking about the possibility of becoming disabled. However, the probability of this is larger than you might expect. Recent studies show that for young workers - over twenty to thirty years- the risk of disability is three out of every ten people. Disability insurance usually pays benefits to people that can not work because of a medical condition that takes more than a year to recover from. In general to receive benefits from a policy the policyholder must fulfill several requirements.
Health professionals will search the 's personal medical history and they will consider every aspect of it, and they will use medical evidence to determine the patient's current condition, when this condition started, and the ways in which this condition affects the person's regular activities. They will also analyze the data shown in the physical exams and the current treatments. They will also want to know about the daily activities of the policyholder such as: walking, sitting, lifting and carrying objects.
The five topics kept in mind for insurance companies at the moment of deciding if a person is a candidate for receiving the benefits are:
The actual working situation - if the person is working at the moment and if the earnings are the same as the ones previously received.
The severity of the medical condition - this requires the patient to be affected for more than a year regarding working activities
The existence of the condition in their internal lists - if the condition is not previously listed it is more difficult to be considered disabled.
The possibility of continuing with the same job - if the person can do the same job he will be automatically be considered as non disabled.
And finally the possibility of doing any other kind of job - considering jobs different than the ones related to the candidates actual training.
Many people depend on a salary to live, and in most cases the whole family also depends on that single salary. Disability insurance helps people to cover those financial responsibilities in case of having a permanent disease or injury that makes it impossible to keep on working.
As previously stated, the chances for disability are higher than expected, and in this context an insurance policy is very desirable. Nowadays insurance companies offer many benefits and several different options for this matter, making it possible for every individual to get a custom made policy, which matches their expectations and their capacity of pay.
5 - Senate Finance Committee Chairman Max Baucus will convene a hearing to examine difficulties workers face in securing benefits they are entitled to from private long-term disability insurance plans...