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What Is A Disability Insurance Cover?

Published On Apr 02, 2021 5:30 AM By KANIKA WADHWA

A disability insurance cover is a financial product sold by health insurance companies that seeks to offer financial or medical coverage for any kind of partial, temporary or total disability suffered by a policyholder due to an accident. Different health insurance policies have different terms, coverages and premium rates for their disability insurance covers and in this article we are going to talk about its basic coverage and how you can select the best disability cover for yourself.

What Is A Disability Insurance Cover?

What Is Covered Under A Disability Insurance Cover?

A disability insurance cover offers basic coverages of a partial, temporary or permanent disability due to an accident. It includes the complete payment of the sum assured in a lump sum or gradual payout format, depending upon the degree of disability. In certain cases, the policyholder also receives a weekly benefit for their loss of income upto a specified period.

It is a good option where all your monetary needs are taken care of in case you are unable to work and provide for the daily upkeep of your family members. A disability insurance cover is available as both a long and short term policy.

How To Select The Best Disability Insurance Cover?

There are several health and life insurance companies that offer disability coverage either as a standalone policy or as part of a comprehensive health insurance policy. But sometimes too many terms and clauses are mind-boggling to choose the best policy as per your needs and requirements. To know how you can do this, read on the following pointers as follows -

  • Select An Appropriate Coverage

While buying a disability insurance coverage, take heed of your regular income and age as these are the primary determinants of your total coverage. Assess your financial and medical requirements and settle for a sum assured accordingly, making sure that it is not less than 60% of your income after tax deduction.

  • Compare With Other Plans

It is always wise to compare the disability insurance cover you want with other plans available in the market to understand whether you are settling for the optimum plan and coverage or not. Check the kind of disabilities that are covered and whether you will receive full compensation for the same. Sometimes, having a comprehensive health insurance policy is more beneficial than having a standalone disability insurance cover, as many insurance companies might deny to pay your claims by citing partial or temporary disability.

  • Choose An Add-On

In case you are looking forward to the basic protection from a comprehensive health insurance policy, buying a standalone disability cover might not be useful. In such cases, look for appendages that will allow you to buy the disability cover as an add-on or rider at the payment of a slightly higher premium. In this way, you can be assured of comprehensive coverage as well as an accidental or disability benefit in light of unforeseen circumstances.

  • Read Your Policy Carefully

Buying the best disability insurance cover ultimately depends on being updated about the policy. Different policies offer different percentages of disability benefit and are dependent according to their different policy clauses. Therefore, read the policy carefully to settle for the best sum assured option and a secured financial future.

Take Away

This is in short, a summary of what a disability cover is. Hopefully this will aid you to select the best disability cover for yourself in anticipation of any unforeseen situation. Accidents and fatal injuries do not arrive by announcing themselves and therefore it is a wise choice to always have a disability or accident cover either as a standalone policy or as part of a comprehensive health insurance policy for optimum security and financial assistance.

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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