What is Disability Insurance Cover in Health Insurance Policy

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5 min read

Updated on Jan 13, 2023

A disability insurance protects an insured against disability caused by accidents, which might hamper the earning capacity of the individual and obstruct his/her daily activities. Let us read about disability insurance meaning in this post.

The disability insurance is regarded as a policy that protects an individual’s wages during a time when he/she cannot work due to physical inability. Sometimes, people face accidents at work which cripple them for some time.  In such cases, the health insurance takes care of the medical costs of the insured, while the disability insurance ensures that the coming in of income that is lost due to the mishap.

Let us read below about how many types of disability insurances are available.

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Types of Disability Insurance Cover in Health Policy?

  • Short-Term Disability Insurance Policy
  • Long Term Disability Insurance Policy
Short-Term Disability Policy Long-Term Disability Policy
Waiting period of these plans range  from 0-14 days Waiting period of these plans range  from weeks and can go up to months
Benefits under these plans can be availed for a maximum of 2 years Benefits under these plans can be availed for life
The plan covers injuries from birth as well as the ones caused by accidents.

Also, injuries caused after long-term ailments are also eligible which are likely to recover after a short period

Covers mental illness, cancer, cardiovascular ailments, tissue rupture etc.

Also Read: Steps to Cancel Health Insurance Policy in India

6 Features of Disability Insurance Policy

If you are looking at the essential features of disability insurance India, they are mentioned below.

  1. Renewal with same benefits – Disability insurance cover allows you to renew the policy with the same benefits without getting any of them cancelled by the insurer. However, if the premium of the plan was increased for all the policyholders in a particular class, it might increase for you too.
  2. Policy is Non-Cancellable – This plan cannot be cancelled by the insurer for any other reason unless the policyholder doesn’t pay the premium on time.  Hence, the policyholder can renew the plan year after year without any changes in the coverage.
  3. Cost of Living Adjustments – As per the cost of living of the insured, the adjustments were required to be made in terms of enhanced benefits received from the disability insurance. This is measured under the consumer price index. However, opting for this feature would levy more premium on your plan.
  4. Return of premium – In case no claims were made within a specific policy period, the policyholder might get a refund of a part of your premium.
  5. Added purchase option – This feature helps the insured to buy an added insurance if required in future.
  6. Combination of benefits – Under this feature, the insured can combine all policies to target an amount specified under the disability policy to cover up for other policies.

Also Read: What is the Free Look Period in Health Insurance Policy?

How to Buy Disability Insurance?

Buying disability insurance is an intelligent decision. However, with many alternatives available, it becomes difficult to make a decision.

There are few things to consider while buying a disability insurance in India. Here we are offering some such suggestions to help you make the buying process of disability insurance easier:

  • Before buying a policy of disability insurance you have to ensure and assess the financial situation of your family thoroughly. This will help in deciding the suitable coverage in case of any future requirement
  • Other things to consider at the time of buying disability insurance include your liabilities, any pre-existing health conditions, life goals, dependents in the family and their needs, and other such aspects
  • Do not forget to compare different disability benefit plans available in the market. To be able to make a ideal choice, you must understand the various plans of disability available including short and long term disability insurance as well as permanent disability insurance coverage
  • Buy disability insurance with wide coverage for several contingencies to get complete protection
  • Remember to read the policy terms well before buying it so that any disappointments in the future can be avoided

Also Read: Cashless Mediclaim Policy – All You Need to Know

Does Disability Insurance Serve the Right Purpose?

Choosing disability insurance might prove tricky. This is because no one knows if they are going to fall ill or get injured. Also, no one can predict if and for how long they are going to stay out of work due to any disability. All these hypothetical questions make it difficult to pick the right disability insurance.

If you consider buying the short term disability insurance, the premiums are much less as compared to the long term ones. However, in this case the payout as well as coverage of the insurance are not extensive. So, if an individual faces any long term disability or illness and stays away from work, the policy will not suffice his/her requirement. In such situations the long term policies might serve well. However, if you could get a combination of short and long term disability insurance, it would be the best combination.

Read More: Health Insurance Plans for Differently abled Person

To Sum Up

Illness and injury are not age bound. They may befall anyone, anytime. Further, these issues cause serious financial challenges to the ones suffering and their families. Even if it is a short term disability, it can still cause you financial strain. So, keeping a backup plan in the form of disability coverage is important.

Further, with the start of online mode, the disability insurance buy online process has become extremely simple and can be used by anyone with ease.

Also Read: National Health Insurance Schemes by Indian Government

Found this post informational? Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance and Investment section. You can visit PayBima to Buy Insurance Online.

 

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FAQs on Disability Insurance Cover, It's Types and Features

Why is it necessary to avail Disability Insurance?

It is good to avail disability insurance as it allows additional protection in case of unforeseen events. If someone gets crippled/disabled because of an accident or disease and couldn't work (for short period or long), they can get financial protection from the insurer.   

Can I avail more than one Disability Insurance?

Yes, one can buy disability insurance if they already have one. Owning more disability insurance plans help individuals to create good coverage.

What Is Minimum Premium for Disability Insurance?

The disability insurance premium depends on the sum insured or coverage amount of the policy along with policy tenure and many other factors. 

Does Disability Insurance Cover Permanent Disability?

Many plans of disability insurance in India include coverage for permanent disability that include the entire period of the insured being incapable of work caused by accident. So, if an insured becomes permanently and completely incapable, he/she can receive the entire sum insured under the permanent disability insurance plan.

How To Calculate Disability Insurance Premium?

The premium rates for disability insurance in India are determined by various factors like age, gender, occupation, and the amount of potential loss of income that the insured wants to safeguard. 

So, if you work in a low risk job with less tension of getting into danger, the premium will be low. Similarly, the greater the risk of injury in a job, the higher the premium.

Dec 12, 2022
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PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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