Definition of Disability
How Disability Income Insurance Policies Define Disability
December 6, 2010 | Author admin
When was the last time you read the fine print of an insurance policy? The fine print tells you some important information–how the policy defines disability, what your benefits will be, what exclusions apply, and more. The disability definition used in the policy determines how you qualify for disability benefits.
To be considered disabled under most policies, you must be unable to earn income. However, many policies narrow down this definition quite a bit. They may specify that you must try working in another occupation if you can’t do your own job, or they may pay benefits if you can do some but not all of the duties of your own occupation. Other policies aren’t concerned with occupation at all; they consider you to be disabled when, because of illness or injury, you earn less than you did before.
Own occupation coverage
Although the terminology used to define disability varies from policy to policy, an own occupation policy generally defines disability as the inability to perform the material and substantial duties of one’s own occupation. This definition of disability is liberal, because even if you can work in another occupation, you still receive disability benefits. Own occupation coverage is often more expensive and may be available only to individuals who have a clean medical history and work in a relatively risk-free occupation.
Any occupation coverage
An any occupation policy defines disability as the inability to perform the duties of any occupation. This definition of disability is strict. To receive benefits according to this definition, you have to be unable to work in any occupation, not just your own. Generally, however, the wording is modified to take into consideration your earning level, education, training, and experience.
Split definition coverage
Many disability policies incorporate both an own occupation definition of disability and an any occupation definition. You purchase a policy that provides own occupation coverage for a limited period of time. After this period ends (usually two years), you must meet the any occupation definition of disability to continue receiving benefits. This is sometimes known as short-term own occupation coverage.
Presumptive total disability coverage
No matter how your insurance company defines total disability, most companies automatically consider certain catastrophic ailments to be totally disabling. If you are disabled by one of these ailments, you don’t have to meet the conditions normally required in order to be considered totally disabled. Not only do you receive immediate benefits, but you also continue to receive benefits even if you are able to return to work. These ailments (which may be caused by injury or illness) are the loss of sight in both eyes, hearing in both ears, speech, the use of both hands, the use of both feet, and the use of one hand and one foot.
Residual disability coverage
Disability policies can pay benefits in the event that you cannot work at all (total disability), can work some time but not all the time (residual disability), or both. Residual disability or income replacement policies pay benefits according to the amount of income you have lost due to disability. These policies pay benefits even if you are not totally disabled and can work part-time. Your benefit will be based on the percentage of income you earn working part-time in relation to what you used to earn working full-time. In some policies, to qualify for residual disability coverage, you must first qualify for a period of total disability. This is the least desirable method.
You can purchase a total disability policy with residual coverage as a rider, or an income replacement policy (as residual coverage is known when that is the only way benefits are paid) as a stand-alone policy. The income replacement policy will generally cost less than the total disability policy with the residual rider.
Partial disability coverage
Partial disability coverage is usually offered as a rider to a total disability policy, although it may be included in base coverage. It is similar to, but not the same as, residual disability coverage. Both types of coverage pay benefits if you can perform some but not all of the duties of your occupation. However, unlike residual disability, a partial disability definition does not consider loss of income. Rather, you are paid an amount equal to 50 percent (occasionally less) of the benefit that you would earn if you were totally disabled. In addition, the benefit period is much shorter than that for residual disability (a few months or a year at most).
Does your policy cover illness, injuries, or both?
Most policies offer coverage for both injuries and illnesses. Some policies, however, offer accident-only protection and don’t cover illnesses. Also, because work-related disabilities are covered by workers’ compensation, most policies will reduce their benefits by any amount of benefits paid by workers’ compensation, as well as any benefits received from Social Security and other government programs.
Sickness is usually defined in disability policies as illness or disease that manifests itself while the policy is in force. This definition covers mental as well as physical illness, but most policies limit payments for mental illness and drug- or alcohol-related disabilities to two years of benefits. Some policies have exclusions for disabilities caused by pregnancy, war, and self-inflicted injuries as well as other exclusions. All of the exclusions will be detailed in the policy.
via How Disability Income Insurance Policies Define Disability.
Posted in 
The reason you are in need of disability insurance – Insurance – Health Coverage
December 1, 2010 | Author admin
Usually, people purchase property and disaster, or casualty insurance to secure their possessions and life insurance to supply profit for their survivors. Nevertheless, lots of people don’t think of securing their profit with disability insurance. But how fine could you live if you weren’t capable to go to work at all? Disablement is an unforeseen event, and if you once become disabled, your capability to make a living could be limited. Although you might have enough finances in the bank to meet your short-dated necessities, what would occur if you were incapable to work for months, or even for years? The real price of disability insurance is in its capability to secure you over the long distance.
What would if you become disabled? What’s then?
What would happen if you undergone an injury or disease and couldn’t function for days, months, or even for years? If you’re alone, you can have no other ways of financial support. If you’re married, you might be capable to count on your spouse’s income, but you perhaps also have many fiscal obligations, like supporting your kids and returning your mortgage loan. Could your spouse truly support you and the whole family? Also, remember that you don’t need to be working in a dangerous occupation to be in need of cheap health insurance; accidents befall not only on the workplace but at home as well, and disease can strike anybody. For these causes, everyone who operates and gains a living has to consider getting disability insurance.
But isn’t disability insurance through the government or a boss enough?
You may consider that you are sufficiently insured from disability because you have health insurance through your boss or through government programs like Social Security and employees’ compensation. Anyway, only fifty percent of employers cover short-dated disablement and just forty percent cover long-dated disablement. Government programs can pay you advantages, but only if you meet a direct definition of disablement. Here’s an idea of the advantages you can already possess, as well as their restrictions:
* Social Security
Though you shouldn’t review the disability advantages you might be acceptable to get from Social Security, you don’t have to count on them either. Social Security rejects more than fifty percent of the claims applied, in part because of its direct definition of disablement. Even if you are deemed acceptable for advantages, you still won’t start getting them till at least half a year after you become disabled for Social Security sets a wait state. Also, your advantage can replace just a portion of your pre-disablement profit.
* Employees’ compensation
If you’re damaged at your job or get ill from job-associated reasons, you can get some disability advantages from employees’ compensation insurance, which is by the way fairly cheap health insurance. How much you get depends on the state of your abide. Nevertheless, when you survey your disablement insurance necessities, remember that employees’ compensation only returns advantages if your disability is job-related, so it proffers only restricted disability maintenance. Certain states also cover just the illnesses or disabilities enclosed in that state’s employees’ compensation laws.
* Retirement plans
Certain government and personal retirement plans pay disability advantages. Frequently these plans pay advantages found on complete, constant disability, or lower your pension benefit in correlation to what you have already got for a disablement. Also, remember that these advantages are normally federated with Social Security or employees’ compensation, so your advantage can be less than you anticipate if you as well obtain disability profit from these government origins.
via The reason you are in need of disability insurance – Insurance – Health Coverage.
Elderly Care: Long Term Health Care Insurance – Is It Really Worth It? | ArticleBiz.com
November 29, 2010 | Author admin
There are many kinds of insurance, so many it almost makes your head spin. There is homeowners insurance, car insurance, renters insurance, life insurance, disability insurance. Heck, the truly cautious can even buy earthquake insurance (predominantly sold in California, of course). But, what about long term care insurance? Is that worth the money? And what is it anyway? Isn’t it like that commercial with the duck in it that keeps getting hurt?
Long term health Care Insurance is almost exactly what it sounds like… a long term care insurance policy you buy to help provide for the cost of long-term care beyond a predetermined period of time. Long term insurance covers care that is not generally covered by regular health insurance, Medicare or Medicaid. It is excess to what you may think you already have.
Individuals who require long term care are not sick in the general sense. They usually need special care in their daily activities, dressing, bathing, and eating, daily hygiene, getting in and out of bed or a chair, and possibly walking. And this may not even be necessarily long term care in the traditional sense. This may be care required to recover or rehabilitate from an accident or a surgery. A long term care insurance policy provides for these and many other things.
If you think you are too young to think about long term care now, think again. It doesn’t discriminate based on age. You have only to think of the actor Christopher Reeve to know that. He became paralyzed at 42 by a riding accident and subsequently required 9 years of long term care. The author Stephen King required long term care following a car accident that nearly took his life while he was a pedestrian in his 50’s. And the actor Michael J. Fox struggles still daily with Parkinson’s disease diagnosed at age 30. In fact, about 40% of those receiving long term care are between the ages of 18 and 64.
Medicaid generally does not pay for long term care in a home setting; therefore long term health care insurance is your best option and definitely something to consider. If home care coverage is purchased, long term care insurance will pay for it, often from the first day it is needed. It will pay for a live-in caregiver or private duty nurse up to 7 days a week, 24 hours a day. Assisted living is paid for by long term care insurance as is respite care, adult daycare and hospice care. Long term care insurance can also pay expenses for caring for an individual who suffers from Alzheimer’s or other forms of dementia.
So before you go on that next skydiving trip, check out some long term health care insurance. You might be doing you and your family a huge favor!
via Elderly Care :: Long Term Health Care Insurance – Is It Really Worth It? | ArticleBiz.com.
What is Waiver of Premium Insurance Rider?
November 29, 2010 | Author admin
Most people are aware of the advantages and take out some or other form of insurance policy depending on their needs. The most basic situation for which a life insurance policy is generally taken is loss of income due to death of bread winner of the family. But many overlook the possibility of a worse situation arising due to permanent disability that could make regular premium payments difficult and result in the termination of the insurance policy.
Definition – The situation is easily remedied by opting for a Waiver of Premium Insurance Rider that can be easily attached to almost any insurance policy. According to the rider, an insured can claim relief from paying future premiums in case he/she becomes permanently disabled or is unable to earn a living due to disability during the term of the policy and the disability lasts for at least 6 months. With this rider, the insured can continue to enjoy the benefits of the base policy without paying any more premiums till the time the disability lasts. Once the insured recovers, he can start paying premium again.
Benefits and Restrictions – The best part of the rider is that since it attaches only to the security part of the total insurance taken, the extra premium to be paid is quite minimal. The rider can be especially useful in case if the premium payments are quite high and will ensure that the policy continues even in case of debilitating illness or accident. To be able to claim premium waiver, the insured must prove that they have been suffering from the disability for atleast 6 months or any other minimum period as mentioned in their rider terms. Also, the rider benefits are available only until a certain age, generally 60 or 65 years. Post the maximum age limit, the insured cannot opt for this rider. The rider is valid only till the term of policy. Once the policy reached term, the rider is terminated. Thus it is beneficial to opt for the rider right at the time of taking out an insurance policy to safeguard your financial investment planning objective.
Disability – Disability definition as per the waiver of premium rider specifies that the insured must be so disabled that he / she is unable to pursue the profession they were engaged in when they became disabled. It varies from one insurance India company to another whether they consider the person disabled to carry out their particular occupation or unable to pursue any occupation in general. It is thus advisable to expressly clarify the point with the insurance company and read related documents carefully before opting for the rider.
All insurers clearly mention the conditions under which the insured will be considered disabled and eligible for the waiver of premium rider. Where some only accept permanent and irrecoverable disability, others may consider the insured disabled even if they are able to engage in work in some cases. Loss of limbs like hands, legs and eyes generally qualify a person for the rider benefit. Besides, a person who suddenly loses his ability to speak or hear due to illness or accident also sometimes qualifies.
Types of Life Insurance Riders
November 15, 2010 | Author admin
Accidental Death Rider: The rider provides extra benefits equal to the minimum sum assured while taking the base policy. It is applicable only if the insured dies during the policy term due to accident. Since in most cases the rider benefit promises a sum same as the underlying policy assured amount, it is also called Double Indemnity Rider.
Critical Illness Rider: Also known as Accelerated Death benefit, this rider allows an insured who is diagnosed with terminal illness and may require long term medical care or who requires confinement to medical home permanently; to withdraw part or whole amount of death benefit from the basic insurance policy. The basic insurance policy reduces by the amount withdrawn under rider. The rider helps the insured and his family meet immediate financial needs of medical treatment and loss of regular income generated by the insured. The rider generally specifies the amount available to insured in such cases and can be withdrawn by him during term of policy.
Accidental Death, Disability or Dismemberment Rider: The accidental death rider can be sometimes extended to include any permanent or long term disability lasting at least for 6 months or loss of limbs or sight due to accident.
Level Term Rider: With this rider you can attach a fixed amount of term insurance to your basic permanent life insurance policy for a certain period. The amount of benefit assured can be multiple times the basic death benefit from the original policy.
Waiver of Premium Rider: This rider helps the insured to continue with his insurance policy even if he/ she are unable to pay regular premiums due to long term or permanent disability. By default a life insurance policy can expire if the premium is not regularly paid. Incase if the insured suffers from a disability that prevents him from earning a regular source of income, the insurance policy premiums become difficult to bear. This rider allows the insured to take waiver from premium payments until the disability lasts or for the entire policy period in case of permanent disability. The terms of proving disability and its valid duration vary from company to company and across different policies.
Guaranteed Insurability Rider: Also known as Renewal provision, this rider allows you to buy extra insurance at certain periods during the specified term of rider. Without letting your existing policy elapse, you can purchase additional insurance or convert basic term insurance without proving insurability or having to undergo fresh medical examination. The rider is most beneficial to those who may experience major medical illnesses or loss of health due to advancing age, as there is no need for fresh underwriting. It also allows to add more insurance with changing life circumstances like marriage or arrival of newborn.
Family Income Benefit Rider: This rider provides a cushion in case of sudden death of the insured during policy term. While taking the rider, the insured needs to select the time frame for which he wants his family to continue receiving benefits. According to their comfort level, the beneficiaries will have the option of receiving regular monthly income or taking the entire benefit as lump sum after the death of the policy taker. As the insured grows old the duration of rider decreases. This rider is most beneficial to families with single bread winner.
What is Waiver of Premium Insurance Rider?
November 15, 2010 | Author admin
Most people are aware of the advantages and take out some or other form of insurance policy depending on their needs. The most basic situation for which a life insurance policy is generally taken is loss of income due to death of bread winner of the family. But many overlook the possibility of a worse situation arising due to permanent disability that could make regular premium payments difficult and result in the termination of the insurance policy.
Definition – The situation is easily remedied by opting for a Waiver of Premium Insurance Rider that can be easily attached to almost any insurance policy. According to the rider, an insured can claim relief from paying future premiums in case he/she becomes permanently disabled or is unable to earn a living due to disability during the term of the policy and the disability lasts for at least 6 months. With this rider, the insured can continue to enjoy the benefits of the base policy without paying any more premiums till the time the disability lasts. Once the insured recovers, he can start paying premium again.
Benefits and Restrictions – The best part of the rider is that since it attaches only to the security part of the total insurance taken, the extra premium to be paid is quite minimal. The rider can be especially useful in case if the premium payments are quite high and will ensure that the policy continues even in case of debilitating illness or accident. To be able to claim premium waiver, the insured must prove that they have been suffering from the disability for atleast 6 months or any other minimum period as mentioned in their rider terms. Also, the rider benefits are available only until a certain age, generally 60 or 65 years. Post the maximum age limit, the insured cannot opt for this rider. The rider is valid only till the term of policy. Once the policy reached term, the rider is terminated. Thus it is beneficial to opt for the rider right at the time of taking out an insurance policy to safeguard your financial investment planning objective.
Disability – Disability definition as per the waiver of premium rider specifies that the insured must be so disabled that he / she is unable to pursue the profession they were engaged in when they became disabled. It varies from one insurance India company to another whether they consider the person disabled to carry out their particular occupation or unable to pursue any occupation in general. It is thus advisable to expressly clarify the point with the insurance company and read related documents carefully before opting for the rider.
All insurers clearly mention the conditions under which the insured will be considered disabled and eligible for the waiver of premium rider. Where some only accept permanent and irrecoverable disability, others may consider the insured disabled even if they are able to engage in work in some cases. Loss of limbs like hands, legs and eyes generally qualify a person for the rider benefit. Besides, a person who suddenly loses his ability to speak or hear due to illness or accident also sometimes qualifies.
Related Categories
How A Good Disability Insurance Policy Upholds You During Sick Times?
November 8, 2010 | Author admin
Worried about the revved up medical bills on your recent sickness- temporary disability? It has made a big whole in your monthly budget. And now you are having sleepless nights on any possibility of recurrence of the situation in future.
Well, with the changing lifestyles, diseases among the generations have increased. Sometimes these diseases take the from of disabilities, costing you more on your pockets. But buying an insurance policy can give you some amount of respite. When you are unable to work, disability insurance coverage replaces some portion of your earned income. You get two major types of disability coverage:
Short-Term Disability Coverage: This type of insurance coverage gives you cover for the early days of your disability. This policy can pay you benefits for two weeks to two years. Usually short-term disability is included in the employee’s benefit package.
Long-Term Disability Coverage: As the name suggests, long term disability helps you replace your income for an extended period of time. This time period generally ends after five years or when the age of the disabled person is 65. This long term disability is either provided by your employer or you can also have it individually. Under this, there are two types of individual insurance. One is non cancelable and the other is the guaranteed renewable.
In this type of insurance scheme, the renewal of the policy cannot be refused by the insurer. The insurer is also required to pay the premiums on time. The major difference between the two is that, you have an extra security in a non-cancelable contract, that the premiums will never be raised above that shown in the policy.
But a guaranteed renewable insurance policy can raise the premiums, if the change made affects all the policyholders. Due to this, the initial premiums are less expensive for the guaranteed renewable policy as compared to the non-cancelable one.
Insurance on individual disability is a basic concept. It considerably replaces your total income and that too on a tax free basis. The disability policy provided by every company is different from the other. But it is not a product that you can shop for on the basis of competitive rates. Buying a cheap disability insurance policy is just like throwing away money.
So before going in for a particular insurance policy, it is advisable for you to do a little market survey and put your hands on the one that is the most suitable to you.
via How A Good Disability Insurance Policy Upholds You During Sick Times?.
Tips To Buy The Best
November 8, 2010 | Author admin
Disabilities may not necessarily affect a person since birth. An unforeseen event or accident can give you a short-term or long-term disability. Therefore, while you may not be disabled by birth, it would be a prudent thing to be prepared for any future contingencies by getting covered through disability insurance. When you look at the disability insurance offerings, you will find plenty of options to select from. With the range of policies at hand, zeroing down on one can sometimes become tricky. But, the following tips can help you make the correct choice.
Look for the definition of disability
Look for your insurance provider’s definition of incapacity as each insurance firm has its own incapacity criteria. Some insurance provider’s may not regard you disabled if you’re able to work in some measure or the other irrespective of whether you can still perform your current job or not.
Check for COLA
COLA refers to cost of living Adjustment. Insurance plans that include the COLA option adjust your disability claim as per the present inflation rates.
Consider the incapacity type
All insurance programs may not cover each sort of disability. Therefore , check for the disability types covered under the insurance policy you are considering for buying.
Non cancelable policy
Non cancelable incapacity policies are barely more expensive than their cancelable counterparts. However, they seem to be a good choice if you are looking for fixed premiums and increased benefits.
Verify the financial ratings of the insurer
before purchasing a disability insurance policy, you should check out the money rating of the insuring company. It’s critical to ascertain whether or not the company will be in a position to settle claims in the event of incapacities.
Waiting period
Your insurance cost relies on the waiting period of your policy. The longer is this period, the cheaper will be the policy. Mull over the duration of the waiting period. Make a calculation of your finance resources to figure how long you can last without receiving these benefits. Often, you receive your first compensation 30 days after the end of waiting period.
Get a credible agent or broker
without regard for your levels of knowhow about the insurance business, the reality is that you can never master the area totally. Due to this fact, it is reasonable for you to get a reputed and credible broker or agent. A broker will help you decide on a policy that meets your specific prerequisites. Likewise, this person can help you get incapacity claims without going thru any needless hassles.
By keeping these tips in mind you can purchase the most acceptable incapacity insurance policy for yourself.
via Tips To Buy The Best.
Disability Insurance Coverage: An Introduction!
November 6, 2010 | Author admin
Disability insurance is a kind of coverage that serves as a portion of your monthly salary in case you cannot work due to some kind of medical situation. It can be better termed as a part of the employee benefits that is being offered by employees. However, some people also purchase the coverage of their own.
