What is Disability Insurance Cover in Health Insurance Policy

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

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

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