Disability Insurance
Disability insurance has become increasingly popular and relevant among employees in the workplace. As governments have sought to restrict national insurance payments to workers injured during the course of their employment, so insurance companies have taken up the mantle, offering disability insurance cover to those willing to pay the premium. The disability insurance offered today is varied, and as a result, often complex. Policies cover a wide range of disabilities, but they will also tie the policy holder down with a number of restrictions. Policy buyers must investigate all aspects of such policies prior to purchase.
One of the key restrictions is the length of time covered by the policy following the advent of a specific disability. Some policies apply a time limit to a claim, which is normally a given percentage of the policy holder’s average salary over the six months’ prior to the policy’s initiation. Other restrictions will negate a policy depending on whether the disability occurred during the course of the working week. For example, a policy holder who trips over and breaks a leg during a squash game on a Saturday morning may not be covered by a disability policy if it states that accidents of that type may only occur at work. Other policies may require a waiting period before any payments are made. Some of these may be as long as six months, during which time the policy holder will receive neither salary nor payment from the policy.
Policy holders should also be aware that holders of personal policies may supersede policies held by a worker’s employers. In some cases, company schemes may be more lucrative than the worker’s policy, and so careful examination of both policies may be required to work out the best cover arrangements. Policy holders should also be aware of how degrees of disability are measured. Able bodied, partially disabled and totally disabled are all legal terms that will be specified in the policy. These definitions should be examined and understood prior to signing on the dotted line.
Disability insurance can be a lifesaver for anyone unlucky enough to be unable to work due to disability. However, ask for advice before paying your premiums.
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