Disability Insurance- Eligibility Criteria and Coverage Options


Disability insurance is a policy that provides protection to people who are unable to work due to some disease or injury. According to their particular circumstances and health conditions, they can take benefits from it.

While underwriting such a policy, an insurance company needs to evaluate certain things in each individual case and to provide a rational disability insurance quote. Some of them are:

Professional status: It involves the status or level of professions the candidates are involved in. The details which are considered- training, experience, ownership, education, skills, etc. This helps to determine the amount of coverage they can get.

Age and health: This point includes basic information such as age, body type, and health conditions of the applicants. This also comprises any pre-existing disease they have.     

Salary status: The coverage amount people can get depends upon their regular income. For insurers, It is hard to provide more coverage to a policyholder than their income.  

Profession: An insurance company classifies each profession differently to evaluate the risk factors involved in them. Some professions such as rock climbing, working under seawater, etc. are highly risky jobs. So, the premium of such policies is also high.

Apart from these, the amount of coverage also depends upon the insurance a person already has. After acknowledging the above factors, an insurance company calculates the total policy coverage amount an applicant can obtain. If policyholders pay their premiums after deducting taxes, the received benefits are generally tax-free.

Different Coverage Options

Insurance companies provide various types of coverage options depending upon the conditions and financial status of different individuals. Some offer a family compassionate program, where an insured person whose dependents or family members are diagnosed with some serious disease or injuries, get monthly benefits. While many other insurance agencies provide lifetime disability benefits to their policyholders. In this policy, people get monthly benefits for their lifetime, if they are disabled totally due to some disease or accident before the age of 65. They can also have the same benefits in case they get sick before the age of 55. Also, after the age of 65, these benefits start to reduce.  

Coverage Period

With the consultation of a broker, a person can choose the period of benefits. There are situations when insured people require coverage with a limited budget. In such a condition, they can decrease their benefit period to have some coverage in hand. A short time period i.e, 1 or 2 years are sufficient to adjust their plans for the future.

An individual insurance policy with disability terms protects the earning ability of a person. Here, the insurance company replaces a percentage of payment to the persons who have lost their ability to work due to some diseases or injuries. So, they can maintain their regular expenses and live a peaceful life.   

Thus, disability insurance comes with various options and profitable terms. Keeping into consideration their particular needs and future goals, insurance aspirants can select a policy that best suits their circumstances.