How A Good Disability Insurance Policy Upholds You During Sick Times?

Worried about the revved up medical bills on yourrecent sickness- temporary disability? It has made a big whole in yourmonthly budget. And now you are having sleepless nights on anypossibility of recurrence of the situation in future. Well,with the changing lifestyles, diseases among the generations haveincreased. Sometimes these diseases take the from of disabilities,costing you more on your pockets. But buying an insurance policy cangive you some amount of respite. When you are unable to work,disability insurance coverage replaces some portion of your earnedincome. You get two major types of disability coverage: Short-TermDisability Coverage: This type of insurance coverage gives you coverfor the early days of your disability. This policy can pay you benefitsfor two weeks to two years. Usually short-term disability is includedin the employee's benefit package. Long-TermDisability Coverage: As the name suggests, long term disability helpsyou replace your income for an extended period of time. This timeperiod generally ends after five years or when the age of the disabledperson is 65. This long term disability is either provided by youremployer or you can also have it individually. Under this, there aretwo types of individual insurance. One is non cancelable and the otheris the guaranteed renewable. In thistype of insurance scheme, the renewal of the policy cannot be refusedby the insurer. The insurer is also required to pay the premiums ontime. The major difference between the two is that, you have an extrasecurity in a non-cancelable contract, that the premiums will never beraised above that shown in the policy. Buta guaranteed renewable insurance policy can raise the premiums, if thechange made affects all the policyholders. Due to this, the initialpremiums are less expensive for the guaranteed renewable policy ascompared to the non-cancelable one. Insuranceon individual disability is a basic concept. It considerably replacesyour total income and that too on a tax free basis. The disabilitypolicy provided by every company is different from the other. But it isnot a product that you can shop for on the basis of competitive rates.Buying a cheap disability insurance policy is just like throwing awaymoney. So before going in for aparticular insurance policy, it is advisable for you to do a littlemarket survey and put your hands on the one that is the most suitableto you.