Today, most people understand the significance of life insurance in their personal, family, and business lives. What most don't recognize, however, is that statistics show that the chance of becoming disabled and unable to earn a living is much greater than the chance of dying.
And yet, how many of us think about the consequences of being unable to earn a conventional income? For example: When your income ceases, who will pay your home loan and other bills? Will your income decrease while expenses rise, causing even more significant debt exposure? How many weeks or months will your company pay your sick leave? Will you have enough financial savings to deal with your expenses until you are fully recovered from disability and can return to work?
Disability Income Protection Insurance
Trusted Union can help with the right plan that begins working when you can't.
Disability Income Protection would be your ideal choice. It insures you against the chance of income loss if you can't work due to illness or injury resulting from an accident. Under an income protection plan, if you become totally disabled, the insurer will pay you a monthly benefit of up to 70% of your monthly income to help you and your family cover your expenses. The following describes some of the features and benefits included in a Disability Income Protection Plan:
Total Disability benefit
A monthly disability benefit will be paid to you after you become completely disabled. Completely disabled means during the first two years of disability because of illness or injury resulting from an accident, you are unable to conduct each duty of your own occupation. After the first two years, if you are unable to perform any occupation for which you are realistically suited to because of education, training or experience. When you take out your disability income policy, you can choose the monthly total disability benefit amount to suit your needs, up to 70% of your normal monthly income. The total disability benefit is payable to you for as long as you continue to be totally disabled and until the benefit period ends.
Your Choice of Benefit Periods
The benefit period is the maximum time period that the company will pay benefits for disability due to illness. Which is usually up to age of 65. As a special feature of your Disability Income Protection (DPP), the company provides a lifetime benefit period if your total disability is the result of an injury caused by an accident.
Your Choice of Waiting Periods
Once your claim is filed, your insurer will begin paying out your monthly benefit after your selected waiting period has expired. Available waiting periods are 30, 60, 90, and 180 days. The longer your waiting period is, the lower your cost of insurance will be.
The partial disability benefit helps you get back on your feet again. If, after collecting a total disability benefit for 14 or more days, you partially recuperate and go back to work at a decreased capacity, the insurer will pay you a partial disability benefit rather than the total disability benefit. Your partial disability benefit is a percentage equal to the reduction in your earnings at a decreased capacity.
Since your cost of living typically goes up every year, your insurance benefit can increase as well. With the Disability Income Protection Plan, the monthly benefit you are paid as a result of total or partial disability will be adjusted each year to reflect the change in the Consumer Price Index during the previous 12 months, up to a maximum of six percent.
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