Disability Insurance

Disability insurance plans allow you to receive a certain amount of income, for a predetermined amount of time, in the event of an accident or medical situation. The only reason someone should apply for disability insurance is if they cannot work and need an income. Monthly payments, for this sort of policy, are determined by the profession (if any), how long the policy is active and what amount the insurance covers. A contract is only concluded when the user has received maximum insurance coverage – or, in most cases, a percentage of their normal earnings (approximately 60 – 70%).

Monthly payment amounts depend on various conditions:

Age

A waiting period of 0, 30 or 60 days.

Status as smoker or non-smoker

Type of profession

Gender

Period of disability (2, 5, 10 or 65 years)

It is important that a disability policy remains consistent, in terms of monthly payments. This means that you are eligible for coverage if you cannot work due to illness or injury but you are not covered from the moment you are able to work again. If you are not covered through your job, it is important to purchase a policy that can cover you in the case of any sort of accident or unexpected illness.

Many employers offer group plans through work but you are able to purchase individual plans as well! The amount of coverage will be based on your job and your income. Doctors, accountants, dentists and lawyers have the best coverage but have very low payments because of their high incomes.

The amount that most insurance policies cover is usually limited to 70% of the income of the insured person.

A disability payment period can last for 2 or 5 years or until the age of 65.