Personal disability insurance is a very important part of our lives. Insurance is a very common thing that almost everyone is engaged in. There is a variety of insurance policies people use for securing their interests. Almost all the insurance policies like vehicle insurance, or home insurance are based on the premium you pay at regular intervals.
But what if you fail to pay the premium? In most cases like this, the insurance plan is broken and you will not get the specified benefits. So you may not get enough benefits when you become scarce on cash. This is quite a horrendous situation. But you will never arrive in a situation like this if you have personal disability insurance. Before we get ahead of ourselves, let us talk a bit about it.
What is personal disability insurance?
Personal disability insurance covers your expenses when you are unable to work. But your inability to work should be a result of some accident or any other thing like that. Even older people are unable to work but that kind of disability is not covered by this insurance. It works just like the other insurance policies. You have to deposit the premium regularly and when something bad happens to you, the insurance will start paying you off.
The amount of money that you will receive here depends on your income. When the insurance will come into effect, you will start getting a percentage of your monthly salary. The percentage is decided based on the severity of your injury. In some cases, when people are permanently disabled from working, they get about 100-120% of their salary. Such an insurance plan helps people a lot in going on with their usual life when something bad happens to them. Apart from this, the amount of money you get here is depended on your earning.
Eligibility criteria for a personal disability insurance
Before we discuss the other important details of these insurance plans, let us talk a bit about the eligibility for getting one. If you lie in the age group of 18-70 years, you are eligible for it. Though the benefits will vary based on the insurance company you have chosen. Apart from it, there are some exclusions too. Exclusions include a list of situations in which the insurance will not cover your expenses. These are some of the most common ones. People make themselves unable to work in some ways that can’t be considered as fate in most cases. Take a look at it.
- If you face an injury while attempting suicide, your expenses will not be covered by the insurance.
- If there is some severe pre-existing medical condition that disables you from working, you will be devoid of the benefits.
- When someone goes to jail after committing a crime, it also disables them from working but they will not get any benefit from the insurance company.
Being aware of these situations is very important for a person who is planning to buy an insurance policy.
How does the settlement work in this case?
If the situation demandsyou for a settlement of the plan, there is a specific way. A family member has to file a claim after the occurrence of the case. The request form should have a proper signature and other essentials. Proper documents like billings from the hospital and other details should be attached to the form.
The time after which you will get the compensation money differs based in the situation and the company. But in most cases, it may take about 7 to 30 days until the company reviews and gives you the compensation money.