Disability Insurance- great help during Contingencies
Security comes with Life. As human beings everyone needs to secure the future. Disability Insurance is one such a kind of security. It provides support when a normal person is unable to work normally due to any unavoidable circumstances like an accident. This abnormality may lead for a short period to even longer periods.
According to studies in Canada alone, 1 out of 7 people become disabled in his lifetime.
Various types of Disability Insurance are
- National Social Insurance Plans
- The Insurance of the Disability of employer
- Advantages of Veterans
- Individual Disability Insurance
Disability Insurance may be “Short Term” and “Long Term.” The Former may vary from a period of 2 weeks to two years; the latter may vary from 5 years until the disabled person reaches the age of 65 years.
“Good disability insurance provides 60-70% of the income of an individual during the period when one is not able to work.”
Though the law ensures worker’s compensation to be provided by the employer, disability insurance is not mentioned specifically. In a few states like New Jersey, New York state law allows employees to receive disability insurance for a maximum period of 26 weeks. There is no mention of long term disability insurance in any of the state laws.
To get the benefits one has to be thorough with the paper work. In the recent past more than 60% of the applications were rejected initially. When spoken to officials they said, it was mainly due to insufficient papers.
In U.S. about 45-60% of the gross income is provided to the disabled who is not able to work due to accident or any serious sickness. Some of the U.S. Disability Insurance companies are –
- Unum Provident Corporation (UNUM)
- Guardian Disability Insurance
- Palmer Insurance Agency
- American Life, Health & Disability Insurance Agency (ALHDIA)
- Berkshire Life Insurance Company of America
Some of the Insurance companies in Canada are-
- AXA’s Disability Insurance Policy
- Canada Life’s Disability and Critical Illness Plans
- Disability Insurance
Life is a risk and full of uncertainties. Accidents and sickness may lead to any kind of disruption in the normal course of life. This will hamper the functioning of the employer. At the same time your own life would be detracked.
To meet the responsibility during exigencies and contingencies some planning needs to be done before hand. Disability insurance by the employer only might not be sufficient. It is always better to get one such done even at personal level.