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Disability Insurance
How Disability Insurance works
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[QUOTE="Nite, post: 172378, member: 28512"] Understanding disability insurance is an important step in comprehensive financial planning. It's a contract between insurance company and policyholder, where the latter is given monthly benefit amount in exchange for his payments, if he experiences a condition that affects his ability to work. If the policyholder is covered under permanent disability policy and have become totally incapacitated, then he'll receive the entire sum assured. And if policyholder is partially disabled, he'll be paid a portion of covered amount on the basis of the degree of disability. Always make regular payments, so that the coverage remains active. Some companies pay monthly benefit, if the policyholder cannot do a regular job due to injury, but is able to do alternative sorts of work. The benefit amount will always be almost the percentage of policyholders income. And, the benefit period can be months or years, or upto a certain age. [/QUOTE]
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