Disability insurance works much like other types of insurance policies. If an individual purchases disability insurance and subsequently suffers from a disabling condition, he/she will be able to receive a disability income. In order for an individual to acquire disability insurance, he/she must locate a suitable insurance company and complete all of the paperwork necessary to apply for disability insurance.
There are some important factors that an individual must consider when applying for disability insurance. All insurance companies possess a different definition for the term “disability”. It is important that an individual locate a company that maintains a relatively broad definition, so that he/she is covered under a variety of different circumstances. In most instances, an individual will be covered by disability insurance if he/she suffers from an illness, physical injury, or other health condition that prohibits him/her from successfully performing his/her job duties.
In addition to reviewing and understanding the accepted definition of “disability”, it is also vital for an individual to understand the payment policy maintained by a company, prior to acquiring insurance with this company. Each insurance company offers individuals a different payment policy. In most cases, disability insurance will provide an individual a disability income in the event that he/she suffers from a disability. This means that he/she will receive payments over an extended period of time, usually monthly, as opposed to one, large sum of money.
The amount of money that an individual receives each month will depend upon the insurance policy that he/she purchases. A disability insurance policy may ensure that an individual is provided for until he/she reaches the age of 65, while others will expire after a certain number of years.