Basically, your disability insurance would be providing you with a source or spring of monetary income to those people who have succumbed to disability of any kind, be it temporary, permanent, or of some specific parts of the anatomy. Any illness or accident of any kind has the potential to take away the greatest power that you got in yourself- your earning power. You have to agree to the fact that one amazing financial asset of yourself is the earning power that you hold, and minus any sort of income, while you are battling with an ailment which leaves you in a hospital, you really would not want to lose the earnings, as well as be unable to generate revenue.
Without any kind of disability insurance, anyone who is dependent on you can lose their income, as well as their homes (if it is mortgaged, or if it has a pending EMI), and most of their investments. That is literally like living on an edge. Disability insurance for individuals can help them have a steady source of monetary flow while they are still on the hospital bed. If you do agree to us, then go ahead and read a few pointers as to the nitty gritties of disability insurance for individuals:
Group disability insurances versus disability insurance for individuals:
With such a wide gamut of options that are available, it is rightful so that you are going to get confused with disability insurance plans. Quite a lot of people think it is okay to opt disability insurance for individuals because there are some struggles in getting group insurance. Hence, we would be shedding some light on why the individual disability insurance plans are more favorable over the group ones, and explain the pros and cons of individual disability insurance over their group counterparts:
Individual disability plans: this type of disability insurance is widespread and pretty common among people who are engaged in white collared jobs artists, surgeons, and administrative officers and so on. This is usually taken up by people who have a potential risk of not being able to work in case of any illness or accident and thus, these insurances have a higher amount of premium that is to be paid.
Group disability plans: individual insurances might get out of the budget for quite a lot of people, but group insurance plans can come to the rescue in such a situation. This type of insurance is provided by the individual’s employers. Now it is up to you to choose a short term or a long term insurance.
Advantages of disability insurance for individuals:
1. Group plans might not be that beneficial: the numero uno reasons why quite a large number of people choose individual insurances over group policies is because it gives an extra amount of coverage for people who are unable to work, but they cannot get sufficient coverage from their insurance. As a rule of thumb, group disability policies cover around 60 per cent of the income, which in most cases are not even their monthly costs.
2. There is a chance of losing coverage with group policies: if you change your employer, you lose coverage. If your plan does not get reviewed annually, you lose coverage. Thus these two are quite the biggest flaws of group disability plans. However, there is absolutely zero chance of you losing your coverage with an individual plan.
3. Optional riders: individual policies would obviously cater to you and you only, which do not come in case of group insurances. Thus, you can add optional riders to your individual policies.
We hope this article provided you with sufficient insight about individual and group insurance policies
