Health insurance plans not only cater to general health condition needs, but also to very specific ones. For such particular care, it is necessary to buy an insurance plan that focuses on one particular kind of ailment. Some examples include critical illness insurance, diabetes insurance, personal accident insurance, etc. Long-term disability insurance is one such policy given to an earning member of a family to protect him or her from loss of income in case he or she is rendered incapable of working due to injury or illness for a long period of time.
This insurance policy helps compensate a little for lost income. In the case of disability caused by accident, loss of pay is covered in addition to the actual hospitalisation and treatment expenses. It provides short- and long-term disability insurance benefits and paid sick leave.
How does it work?
Disability insurance comes into play when there is temporary or permanent total disability due to an accident. Full and permanent disability will fetch you the entire sum assured. Partial disability will pay you a certain percentage of the sum assured, based on the extent of disability. For a short-term disability, a weekly benefit is paid up to the maximum period specified.
What conditions and features of long-term disability insurance?
• The illness or injury should last over 26 weeks.
• The person cannot be self-employed.
• Commonly, claims under this policy are made for poisoning, mental disorders, cancer, cardiovascular disorders, etc.
• The policy is renewable, but is also subject to a rise in the premium should the insurer decide to do so for a certain class of policyholders.
• The insurer has no right to cancel the policy if the premium is being paid perfectly.
• There might be a waiting period of some weeks or months before the maximum benefit is granted. This benefit period can go on for several years or even a lifetime.
It can be tricky to choose between long-term and short-term disability insurance because it is impossible to predict what kind of a situation you might face in future. However, it is important to be protected by a disability insurance because age and family history don’t matter when it comes to injuries and certain illnesses. Make sure that you are financially prepared so that in case of a health crisis, you can leave financial worries behind and just focus on the recovery process.
To browse for easy-EMI, easy-return insurance policies, you can visit ManipalCigna’s website