Best Money Back Policy 2023 – Check Feature, Benefits and Eligibility for Money Back Policy
636
5 min read
In today’s world, it is difficult to survive without earning and to earn, one needs to stay fit and fine without any disability. Thus comes, the need for Disability Insurance, which helps to provide a financial shield to the policyholder, who meets any disability challenges and is unable to continue professional duties. Be it a permanent disability or a temporary one, with disability insurance, a bread earner of a family can ensure that the family’s financial stability is not compromised during the period of disability.
This post aims to help you understand all about disability insurance and the difference between short-term and long-term disability insurance plans. So, stay tuned and read this entire article.
Disability insurance meaning in simple words, is a financial protection against any risk of disability that can hamper a person’s professional working ability. Through disability insurance, a person can get coverage for the monthly lost wages and even meet the medical expenses needed to treat the disability. In short, it aims to make life normal at least, financially for the one who suffers a temporary or permanent disability.
Here are the main benefits of opting for a term insurance plan with a disability rider benefit:
Disability insurance is broadly divided into two types, and they are:
As suggested by its name, short-term disability insurance offers coverage for a shorter period, in case of a temporary disability. Thus, the benefits of this kind of disability insurance policy offer benefits for a maximum of 2 years. The main types of injuries covered under short-term disability are injuries due to an accident or any long-term illness.
On the other hand, long-term disability insurance is meant for those with a permanent or long-term disability. The sole aim of this type of disability insurance is to provide the policyholder with all the benefits of the policy for several years. This policy offers coverage against heart diseases, mental illness, tissue damage, and even cancer.
The table below shows you the clear short-term vs long-term disability insurance plan features:
Factor |
Short-Term Disability Insurance |
Long-Term Disability Insurance |
Most Suitable Candidate |
Anyone with a temporary disability |
Anyone with a lifetime or prolonged disability |
Coverage |
From several weeks up to 2 years maximum |
Several years in a row |
Waiting Period |
0-14 Days |
Might take several weeks |
Premium |
Low premium rates for lower returns |
High premium rates for higher returns |
So, one should buy long-term disability insuranceor short-term disability insurance; which is better out of the two? Well, this is a tricky question! You must consider certain factors, as mentioned earlier in this post to decide which type of disability insurance will be perfect for you. In general terms, those who want a disability insurance plan with cheaper premiums even if they offer lower returns must go for a short-term disability insurance plan.
Whereas, those who want extra protection because they feel they are working at a higher-risk workplace, where there are higher chances of meeting a lifetime disability, must choose a long-term disability insurance plan. Both types of disability insurance plans will prepare you for a backup plan to meet any type of financial constraints owing to a disability in the future.
In the case of a self-employed person, there is no scope for the employer to offer disability insurance. However, individuals working under some employers can check with the employer about the type of disability insurance they are willing to offer them. Alternatively, you may also buy a disability insurance rider with your individual term life insurance plan by paying an extra premium.
Conclusion
Whether you choose to get a short-term disability insurance policy or a long-term, both will play a crucial role in protecting your financial stability during periods of disability. The choice is yours, whether you wish to get this protection for the long-term with higher returns and higher risks, or you want to opt for a short-term with lower returns and lower risk factors.
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.
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.
Term insurance is an efficient and affordable way to protect a family's financial future against the sudden mishaps of life. However, if, for any reason,.
Updated on Dec 23, 2023 Investment planning is as crucial as earning a livelihood. For the key earning member of a family, it is all.
In today’s world, it is difficult to survive without earning and to earn, one needs to stay fit and fine without any disability. Thus comes,.
Do you know that at present, there are about 24 term insurance providers in our country, each claiming to be the best term insurance company in.
A life insurance policy secures a family monetarily if there is untimely demise of the policyholder during the policy term. If diagnosed with a terminal.
As the name suggests, Canara HSBC life insurance company was formed with the collaboration of three prominent financial establishments namely Canara bank, HSBC life insurance.
A term insurance plan is like a security that safeguards a family financially in the most unfortunate event of demise of the family head. Such.
When it comes to insurance, LIC is the most trusted insurance company in India. With a huge customer base, this largest insurer is also one.
LIC of India is one of the most trusted brands when it comes to securing the financial future of your family and dear ones. Let.
While we make plans and keep chasing our dreams, seldom do we realize that life is unpredictable. No matter what we are doing, and how.
Speak to our advisor
Mahindra Insurance Brokers Limited (A Mahindra Group Company) - Unit-202, A-Wing, 2nd Floor, Amiti Building, Agastya Corporate Park, Kamani Junction, LBS Marg, Kurla West, Mumbai - 400070. Tel: +91 22 66423800
Licenced by IRDAI License No. 261; License Validity : 17-05-2025; Category : Composite Broker; CIN : U65990MH1987PLCO42609 Member of Insurance Brokers Association of India (IBAI).
Insurance is the subject matter of solicitation.
For a seamless experience, use the latest version of Chrome/Firefox/Internet Explorer.
Copyright © 2024 Mahindra Insurance Brokers. All Right Reserved.
Verify your number to activate your best premium offer
Please enter the OTP sent to XXXXXX 4099 to continue