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What Is Disability Insurance Cover

22 June 2022, 1:00 AM

Priya was returning from work when her scooter skidded off the road and hit an electric pole. Priya suffered severe injuries and was bedridden for almost six months. As she was the only breadwinner of the family, supporting her aged parents, the thought of her salary stopping due to her inability to attend her office was a very worrisome matter. 

Priya was not worried though and she only focused on recovering. She got discharged from the hospital and enrolled in a physical therapy session that helped her to walk faster. All her medical bills, and the livelihood costs for the period she was unemployed, was taken care of. How do you ask? Well, Priya had been very wise in the past and she had invested in a disability health insurance policy cover which paid her a sum insured for her temporary disability, along with the medical cover she needed for her treatment.

What is Disability Insurance? 

Disability insurance is a type of insurance policy that has the following covers:

  1. Medical Cover 
    You get a medical cover for all the expenses incurred in the accident, injury or illness that leads to the disability. For example, if you were disabled due to a road accident, you will get the health insurance cover to pay your hospital bills after the accident. This is a very big advantage and one of the main reasons why people buy disability insurance. 
     
  2. Cover for Temporary Disability 
    The next benefit is the temporary disability benefit. If the disability suffered is temporary in nature and you can recover and return to your normal life in a span of time, it is considered to be a temporary disability. These include fractures, temporary disability to walk, temporary loss of vision, etc. If you are temporarily disabled, the insurance provider will pay you a percentage of the sum insured and the payment will continue till the time you are fit enough to resume work and earn your salary again. 
     
  3. Cover for Permanent Disability 
    A permanent disability means you cannot recover from it and the condition will remain till the last day of your life. Permanent disability includes amputation of limbs, complete loss of vision, full-body paralysis, etc. If you suffer from a total complete disability, your insurance provider will pay you the entire sum insured, and with that, you can take care of your future financial responsibilities.

The coverage is offered whether you have a full disability or partial disability. The percentage of the sum insured assigned may vary for the degree of disability. Every insurance provider has a different clause associated with this, so you need to read the policy wording very carefully to understand what cover you exactly are entitled to, in case you suffer a disability. 

How to Choose the Perfect Disability Insurance Cover? 

Here are some tips for you to choose the perfect disability insurance cover:

  1. Assess Your Needs 
    The disability insurance cover will act as an income replacement when you become disabled. The amount should be enough to support you and your family and also ensure you do not have to make any lifestyle adjustments or cuts. This is why you need to make an accurate estimate of how much will be needed. 

    Pro Tip: Assess all the needs such as EMI payments, education costs, health care costs, etc to understand exactly what the volume of your ideal disability insurance cover should look like. 
     
  2. Compare the Options 
    Next, you need to compare the various options available and then choose the most appropriate disability insurance plan. There are many plans available from many health insurance companies. Never make the mistake of buying the first plan you come across. 

    Pro Tip: Rather, run a quick online comparison to locate the best plan at the best rate. You will save a lot of money and will also find a very appropriate and useful cover after you compare the options.
     
  3. Read the Policy Wordings 
    And last but not the least, you need to read the policy brochure very closely. At times, important points are mentioned casually and unless you read between the lines, you won't be able to locate the hidden clauses, cashless medical coverage, etc. 

    Pro Tip: Go over the list of exclusions to understand the exact scope of the cover. This will prevent confusion later on and will allow you to make a claim smoothly.

Example Of Disability Health Insurance Cover

  1. Star Special Care Health Insurance Policy
    This health insurance policy has been designed especially for children who are diagnosed with, ASD which is Autism Spectrum Disorder. The policy does not require a pre-policy medical screening and offers a regular indemnity health cover.
  2. Bajaj Allianz Premium Personal Guard Plan
    This plan offers extensive coverage in case of permanent Total Disability as well as for  Permanent Partial Disability that can go up to 75% of the sum insured.
  3. HDFC ERGO Personal Accident Insurance
    This plan comes with the option of lifelong renewability. The plan covers Permanent Total Disability, Burns, and Broken Bones. Ambulance costs are also covered when an insured is to be transported to a hospital.

If you are careful when buying a disability insurance cover and you do ample research after understanding your own requirements, you are bound to have the best possible coverage with yourself.

The Final Word

There are many forms of insurance available these days, and the disability insurance cover is one of the handiest. No one can predict what dangers lie in the future and so, one has to be as prepared as possible. Buying a disability insurance cover proves to be very beneficial as it allows you to sustain even when you are disabled and cannot earn an income anymore. 

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