Unraveling The Benefits of a Personal Disability Insurance

Our lives are full of uncertainties. Almost every aspect of our lives have possesses some risk. But we don’t care much about that until something worst happens. And when you are not prepared for such an occurrence, its effects may last longer than enough. That is why having personal disability insurance is considered a wise decision for almost every individual. If you are not entirely aware of this term, it is an insurance plan that comes into personal disability effect when you are not able to work due to some disability. When you reach such a situation, you lose the major source of your income every month as you are not working.

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Having personal disability insurance makes sure that you are getting enough money so that your life will run smoothly in a situation like that. In this article, we are going to talk about the major benefits and types of this kind of insurance. 

Types of personal disability insurance

Personal disability insurance is of two types. The first one is Short-term disability insurance and long-term disability insurance. We will discuss the short-term disability insurance at first. 

Short-term disability insurance

It is called short-term disability insurance because it serves as an income source for a short duration of time as compared to long-term disability insurance. The waiting period for this insurance plan to come into effect ranges between zero to fourteen days. This insurance policy is good if you have got an injury that is not very critical and doesn’t last long. These insurance policies may cover your expenses for up to two years at maximum. 

Long-term disability insurance

This is another major type of personal disability insurance. It may take some weeks or even months for coming into effect. But these insurance plans are designed to provide you financial assistance throughout the lifetime. In case you get some critical injury or a disease like cancer, serious heart disease, you might not be able to work again. And the long-term disability insurance policies will help you in that case. A large number of factors are considered by this type of insurance policy. 

Major benefits of personal disability insurance

Now that you are aware of disability insurance and its major types, it is time to know about the major benefits of these insurance policies. In this section of the article, we are going to talk about those benefits in detail. After completing this article, you will be able to decide on your own whether you need such a plan in life. 

Covers your expenses when you are unable to work

This is the biggest benefit of the disability insurance policy. This one benefit is able to solve almost all the problems associated with your shortage of income. When you are not working, you will not get the paycheque at the end of the month. In that case, you won’t be able to pay for your health care and all other things like that which in turn will bring new problems for you.

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But when you are getting money on a regular basis, there is no chance that you will find any difficulty with your regular life. 

It is a small investment with huge returns

If you sum up the money that you spend on technology and other things for pleasure, it is usually considerable. The premium that you have to pay inpersonal disability insurance is normally equal to the regular expenses that you do for pleasure. Based on the policy you choose, you may be able to safeguard about 55% of your income by investing just 2-3% of it.