Disability And Life Insurance Policies
We are living in a world where we have to buy an insurance policy for almost everything in order to be safe and secure or get added benefits. For example, we need insurance to get mortgage from the bank, we need insurance to be able to drive a car on the roads, and we need an insurance to cover our health expenses. An individual who does not have a good cover for them all is considered to be irresponsible towards his and his family's life. Ironically, even the smartest of people miss out or overlook policies like disability and life insurance. Let us discuss them in brief.
Life insurance policy is meant to compensate the people who have been left behind by the insurance policy holder after his death with the policy amount so that they do not suffer from the sudden loss of income. This policy can hence be claimed only once after which the policy terminates. This type of policy finds special mention in the lives of those who are important contributors to the family income.
On the other hand, disability insurance can be availed more than once and is applicable when an individual is not able to continue work due to a physical injury barring him from doing so. People who work in labor intensive fields require this most as even a small physical injury can make them unfit. Also, the risks of getting hurt are higher here. For someone who happens to become a victim and does not have a cover, all income gets negated. However, if he owns a disability insurance policy, he would be compensated for the loss of wages by the agency.
Most businessmen who deploy their employees in high risk areas make sure that they get them covered under a plan. They are smart enough to understand that an accident may come without warning and it could lead to huge losses if they victim is not covered. If this is the case, as an employee, you do not require buying a separate policy. Contact the human resource department and confirm whether this type of cover has been provided to you before taking any further steps in this regard.
If it suits the budget of an individual, it is better to buy both the policies and secure the years of life (with disability insurance) and that after life (with life insurance). However, if one has to make a choice between the two, it would always be better to buy disability insurance. This comes with the fact that if a disability occurs, one still has to live and would require constant care from others thus barring them from working themselves. On the other hand, if one dies, the others in the family can always start working to make up for the loss of income.
Which one to choose is of course a decision that has to be made by the person looking for the policy. Remember that is always better to understand the pros and cons of the different policies and what impact can they truly have before investing.