Having a disability insurance policy could be a lifesaver if you cannot work for a period, especially with a family; sickness which prevents you from working for a period of time means that an alternative income is required. This allows a person who is incapacitated to get well without having to worry about how their family will survive. The chances of you being in need of a disability protection plan before the age of 65 far exceeds the possibility of death prior to this age.

The strange fact is that although the risk of death is lower than disability, more people organize life insurance policies than disability coverage. Those same statistics also provide the astonishing fact that a 40 year old worker has a greater chance of requiring three months or more off work owing to disability than they are of an early death before 65. Searching for a low disability insurance premium is a key element as it costs more to run this type of plan.

Unlike life cover, disability rates are based on the potential income lost as well as, age, occupation and general health. To help reduce the possible financial impact of taking out of the premiums it is possible to delay when the first payments are made; so effectively reducing the possibility of claiming on the policy. Alternatively the policy holder could request a shorter cover period which would only cater for short periods off work; although you need to bear in mind that once your period of benefit ceases you would have to support yourself.

Insurance company policies will differ but the majority will only pay a percentage of your lost income so it is a good idea to choose the best one for you and in this instance, the cheapest may not necessarily be the best. Health insurers offer two main types of coverage: the first is for short term disability insurance protection lasting only a matter of months. The other option is total disability cover; this can provide a long term (but reduced) income although this is only granted if the person can show they are no longer able to carry out their previous job.

Whatever the situation, a person making a claim owing to incapacitation will be sent a disability benefit check every month until the end of the plan or they return to work. Other key points to consider when looking into health policies are if there are restrictions on:

*Any previous medical problems *Whether you will have to pay tax on the benefit *Time frames before benefits are terminated *Whether your occupation will increase the cost of premiums

The level of cover provided for your original salary will differ with each insurer’s disability insurance policy. This percentage of your income paid by your insurance plan can be as little as forty percent or as much as seventy percent, so you can see there is quite some variation. It is the number one factor that will define what your income will be in case you become disabled.

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