Why You Need Disability Insurance

 

Disability insurance provides risk coverage for the lost income due to failure to work in case of any permanent or temporary disability. This kind of insurance helps in providing a part of your lost income along with the medical expenses if you happened to meet with an accident that led to disability. It covers sick leave and offers disability benefits for short and long-term periods.


Why You Need Disability Insurance


What Disability Insurance Covers?

A disability can happen due to various reasons. Let us understand the coverage offered by this insurance:

  • A weekly benefit is offered as compensation for the lost income for short-term disabilities, up to a particular period as specified in the policy
  • In case of an accident, leading to disability, the insured will receive 125% of the sum insured
  • Some insurance offer a waiver of premium in their base coverage

Types of Disability Insurance

Short-term

  • Waiting period for such plans can range from 0 to 14 days
  • Benefits can be availed for a maximum of 2 years
  • Injuries since birth or caused due to an accident or after long-term ailments (which can be recovered after a period) are eligible

Long-term

  • Waiting period can range from weeks to even months
  • Policyholder is eligible to avail the benefits for life
  • Usually covers critical illnesses and injuries which might force you to discontinue your work
  • Covers a wide range of mental illnesses, cancer, cardiovascular ailments, tissue rupture and similar diseases
Location: India

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