What exactly is disability insurance?
A disability insurance policy can help with a long or short term disability. A disability could result from sickness, an injury, or an accident. If individuals are left unable to work, basic living costs can become problematic.
Disability policies are one form of income protection insurance that helps those unable to work. If unable to work, long term disability insurance policies support you by paying between 50-70% of your salary. Essentially, they give a monthly benefit that replaces a large portion of your salary!
You can get both short term disability insurance or long term disability insurance. Some disability insurance cover is included in employee benefits, but employers generally only offer a short term benefits package.
Regardless check what your workplace cover you for, and the benefit amount, before getting a quote.
What is covered by disability insurance?
If you experience disabilities that take you out of the work place, they are normally covered by your insurer. These might be illnesses like cancer, or injuries from falls and car accidents.
The exception is accidents at work, these are normally not covered. This doesn’t mean you won’t get anything though. Instead these will be covered by workers’ compensation insurance.
Essentially, any illness or injury that causes disability is eligible for a payout. Unless, of course, your policy has exemptions in the terms- so check the fine print of the contract.
Having a professional scrutinise the terms and conditions of different quotes is a wise move. An expert adviser can also explain what providers offer the best support and services for you.
Here is a video discussing disability insurance.