In the modern world of uncertainties, both health and financial well-being are paramount. Fortunately, you can secure your and your family’s future by buying life insurance. However, it doesn’t provide coverage if a member gets temporarily or permanently disabled.
Here comes the importance of Disability insurance in securing a person’s financial future in case he gets impaired due to severe illnesses, accidents, injuries, aging, and accidents. First, let us understand how disability insurance works and who needs it.
What is Disability insurance?
Disability insurance protects a person or family’s income source in case of any unprecedented accident, illness, or injury that makes him disabled and creates a hindrance to performing his core activities for livelihood.
This insurance supports the Policyholders and their families to maintain living standards by providing a handsome amount periodically. Sometimes, it is interchangeably used with total and permanent disability insurance (TPD).
There are mainly two types of disability insurance:
- Long-term disability (LTD) policy.
- Short-term disability (STD) policy.
Who needs disability insurance?
The question of who needs disability insurance is like asking for the certainty of life or the day of your death. Unfortunately, as we all know, there is no certainty when we can meet an accident or medical condition which impairs us for a period or lifetime.
Most of us rely on costly health insurance, but it only covers your treatment expenses, not your daily living or earnings. Here disability insurance emerges to get us through our critical conditions. So, if you fall in any of the following categories, you may need disability insurance.
Sole breadwinner of the family
If you are the only earning member of your family, extended illness or injury may hamper your family’s livelihood. Disability insurance can fill your gap in such situations.
Employed at high-risk jobs
Physically demanding and high-risk jobs like construction, nursing, and transportation expose you to certain uncertainties. However, even if a workers’ compensation plan covers you, disability insurance can help you with regular income.
Parents
When you have minor children to look after, securing yourself with disability insurance makes sense. If your disability stops you from working, your children’s future could be in jeopardy.
People Prone to injuries/ diseases
Consider getting disability insurance, if you;
- Follow an unhealthy or sedentary lifestyle
- Abuse of alcohol or excessive smoking
- Have recurring issues such as nagging injuries or back problems.
Disability insurance in Australia
The Australian government department of health and aged care has prepared a mechanism to facilitate citizens for disability insurance in their condition of illness or permanent disability. Still, the system is very complex and lengthy.
In this modern age, everyone wants personalized and speedy solutions. To provide citizens with a practical and precise solution, All disability offers hassle-free disability insurance enrollment and a quick disbursement process.
Advantages of a disability insurance
Guaranteed renewal
The policy should be renewable every year with all benefits mentioned before. However, the premium may vary according to the market aspects.
Cost of living standard
The policy should be self-sufficient to cater to the needs of the family and individuals as per their living standards.
No claim bonus
A No claim bonus facility should be there if the policyholder made no claim last year.
Add on purchase
The company should provide an add-on purchase if required by the policyholder for his family at a low cost if it suits him best.
Partial disability insurance
The policy should provide partial support to the holder in case of partial or temporary disability conditions.
Coordinated benefits
The policy and its benefits shall be chosen to suffice all your needs, including fulfillment of other procedures that are critical for you.
Eligibility criteria to avail disability insurance policy
To be eligible, you must have:
- A significant permanent disability/ a developmental delay
- To be an Australian citizen (else permanent or protected special category visa)
- To be under 65 years of age
- To seek the support of a person or equipment to carry out regular day-to-day life chores
Conclusion
Choosing disability insurance can be tricky and may be felt out of the league because it is very difficult to predict when a person will face injury or illness and for how long. Therefore, you must analyze your needs and situation to choose the plan.
Any injury and health condition can create big financial problems for a person. So it is better to have a backup to sustain in present society. Today, there is no dearth of highly customized disability insurance plans. You can weigh out your options and then choose the best combination accordingly.
