Disability Insurance Policies
Disability insurance is the kind coverage that provides payouts to a person who is unable to continue working at his or her usual place of employment as a result of injury or illness. This kind of coverage is engineered to enable compensation for some of the lost income an injured or ill worker would have normally received from his or her employer.
Anyone who depends on a regular paycheck to provide for his or her family is the perfect candidate for this kind of insurance. Many workers believe that the normal worker's compensation insurance will fully cover a person in the case of an injury or illness. It is very important to remember that worker's compensation benefits only pay out if a person is injured only at the workplace. The unfortunate truth of the matter is that often an employee can fall ill or be injured outside of the workplace, causing disability and the resulting loss of income.
When an individual is injured or falls ill and is thus unable to work, he or she must file a claim with the insurance company that is providing this specific kind of coverage, much the same as one would do with any other type of insurance claim. And, as usual, the insurance provider then goes over the claim determining the covered persons eligibility for a payout. Should it be approved, the claimant is then compensated.
These kinds of policies come in several different varieties, with differing degrees of coverage. That which is most common is designed to help in the case of a disability and provides monetary help to cover a portion of lost income the worker would usually earn if healthy and working normally. Other kinds of coverage include more extensive wage loss compensation and help with other expenses that can be necessary during a time of disability.
Some policy coverage includes the provision of payment of mortgage or rent during the downtime. A potential purchaser of such insurance needs to know that this kind of coverage usually comes with a waiting period that falls between the disability event and the date in which compensation begins payout. The period itself can be different with each policy offered.