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What does Disability Insurance Policy Cover

By Prabhat Singh - May 15,2022
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Are you fully prepared for what is to come? No one knows what will happen, but are you fully prepared for it? I know it might sound completely off-topic to begin with, but the question is crucial. Life is unpredictable; we all know that; however, how many of us have actually planned anything for unprecedented events or incidents? Probably only a handful of people. 

In a country, as populated as India, disabilities are not unheard of. Such incidents could not only disable you for life, but halt your earnings as well, and if you are the sole bread earner, the situation can affect you adversely. Hence, the question arises, what can you do? Well, we’ve got three words for you: Disability Insurance Policy. 

What is a Disability Insurance Policy? 

A disability insurance policy is a policy that safeguards you financially from any disability incurred because of an accident. In similar words, disability insurance covers a portion of your lost income if you cannot work due to disability. It covers your treatment expenses, and in case of job loss, you get regular payments from the insurer. Besides all these, the disability insurance policy also includes paid leave and benefits for both long-term and short-term disabilities. 

You can either buy the policy independently as standalone insurance or tag it along as a rider with your term insurance. Either way, you are getting benefited and ready for any unforeseen incidents.

Also Read: Here’s Everything You Should Keep In Mind When Buying Your First Health Insurance Policy

What does a Disability Insurance Policy Cover? 

A disability insurance policy aids you financially, providing you returns more than the total sum assured, paid leaves etc. Let us look at all the inclusions in detail: 

1. Cost of Surgery/Treatment of Disability

If the consequences of accidents were so much so that they disabled the policyholder (partially or permanently), then the treatment cost is entirely reimbursed by the insurer.

2. Weekly Compensation

In case the policyholder meets an accident and gets partially disabled, costing them the job. In that scenario, the insurer will provide monetary benefits as compensation for the lost income of the policyholder. The tenure of the compensation depends on the policy terms. 

3. Returns More Than Total Sum Assured

If the policyholder meets an accident and gets disabled, then as per the terms and conditions of the policy, a partially disabled individual will get 100% of the sum assured, while the permanently disabled get 125% of the total amount of the policy.

4. Waived-off Premiums

Some insurance companies entirely waive off the premium of the policy as a part of their basic coverage. 

5. Hospitalisation Expense

Like health insurance, disability insurance covers the expense incurred pre and post hospitalisation. The early diagnosis, lab tests, doctors’ consultation etc., the cost for all these and more are covered. 

Advantages of the Disability Insurance Policy Cover 

Here are some reasons that will convince you that disability insurance is a must-have financial tool nowadays: 

Financial Security From Any Mishaps

The policy helps you pay high hospital bills and focuses more on recovery rather than how to pay the bills. 

Source of Income 

In case the sole earner of the family gets disabled due to an accident and loses his/her job resulting in a cut down of income, a disability insurance policy provides you with compensation for the job loss. 

Covers Cost of Surgeries

In most cases, disability insurance does cover the cost of cosmetic and elective surgeries. To get the benefit, your physician must certify that you will be unable to perform your regular duties because of surgery. 

Choose a standalone disability insurance policy or buy it as a rider. Either way, you need the policy to build a cushion around your dependents to save them from eventualities resulting in your disability.

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