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How to Find the Best Disability Insurance Company

Disability insurance is a useful safeguard that can pay part of your income if you cannot work due to an illness or injury. Disability insurance comes in various forms and can be obtained from an insurer or an employer. In recent years, the number of companies that provide disability insurance has increased as more and more people take steps to protect their earnings.

While at first, buying disability insurance can seem daunting, there are steps that you can take to ensure that you get the right policy for you at an affordable price. Let’s discover how you can find the best disability insurance company for your needs.

Short Term Disability Insurance, Long Term Disability Insurance, or Both

Before beginning your search, it is helpful to first understand the difference between the two main types of disability insurance. Short term disability insurance policies can provide a portion of your salary if you are unable to work for a short period. This period can last for around three to six months. Long term disability insurance however provides a portion of your salary if you are unable to work for a relatively longer period. This period can last for over six months. Despite these differences, there are some key similarities. 

Both coverage types include an elimination period that you must be disabled for before you can claim disability benefits. Effectively, you must wait until this period is over before you can receive your benefits. Although it is possible to settle for either short term or long term disability insurance alone, it is more beneficial to assess how to make both types of disability insurance work for you. A common preference involves combining an employer provided long term disability insurance with an additional individual short term policy to identify and remedy any gaps or limitations in your insurance.To find out more, take a look at some long term disability insurance quotes online.

Determine Your Level of Cover

When shopping for disability insurance, there are a number of factors that need to be taken into consideration. If you are young and healthy it can be misleading to think that you do not yet need to invest in disability insurance. However, at the beginning of your career, you are in fact much more likely to be underwritten successfully, so taking time to learn more about all your options out there when it comes to insurance is going to be quite a wise move. Most insurance policies require medical underwriting, so be prepared to surrender to reviews of your medical records, blood tests, and physical assessments. Failing to provide information can invalidate your policy.

When filling out forms, aim to match your policy to your occupation, age, and profile so that you can get the most favourable outcome. Start by working out just how much of your income will need covering. Some jobs are naturally riskier than others and therefore insurers typically use a Standard Industry Code for every occupation to determine an approximate assessment of risk. This assessment can help you find an appropriate level of cover. Even if you feel that some information might be unimportant or irrelevant, you should still include it as it is not worth the risk of being uninsured.

Weigh Up Your Options

Once you have decided on an appropriate amount of cover, you can start to compare different policies and insurers to find the best deal for your needs and budget. There are some excellent insurance comparison websites out there that can help you to narrow down a shortlist of providers. Generally, the price of a policy depends on the length of the elimination period, the benefit period, and the strictness of the definition of disability within the policy. Navigating this can make it easier to find the right overall policy for your needs.

There are other resources out there that can be useful too. For example, you can seek advice from an independent consultant who works with several insurance companies and can point you in the right direction. Furthermore, why not complete a needs-analysis that takes your current and ongoing expenses such as any mortgages, debts, and savings into consideration? Above all, when browsing your options be sure to establish precisely when benefit payments can start after the elimination period, and for how long you can be paid (the benefit period). 

Following the tips above should make finding a disability insurance company that meets your individual needs easier. Ultimately, by investing in a disability insurance policy with a reputable insurer, you will have the peace of mind that your future earnings are protected. Thinking of investing in even more ways of safeguarding your finances? Make sure to take these steps for your family’s financial future!