Your Guide to Disability Cover on Your Life Insurance Policy

Is Disability Insurance worth it? 

If disability prevents you from working as an expat in a country where you are currently based, then carrying an international disability insurance plan can really help. 

Here we have compiled a practical guide on what you need to know about disability insurance and how it helps you mitigate your disability-related expenses. 

Why is disability insurance important? 

Disability insurance can serve as your income substitute for your daily living expenses whether it be your mortgage, car expenses, or your kids’ tuition fees when you cannot work because of your injuries and illnesses. 

These things can amount to large expenses. Consequently, you are advised to get all these expenses covered by including the disability benefit option on your life insurance plan. 

What does disability insurance cover? 

A disability policy provides benefits if you suffer total disability (incapacity) because of sickness or an accident. This will usually pay a lump sum payment to the insured member. Disability insurance or Total Permanent Disability (TPD) provides peace of mind by providing additional income when you need it most.  If you were incapacitated by an illness, you might face unforeseen expenses when you could least afford them. 

The plan can be used to supplement your lost earnings or those of your spouse, civil partner, partner if they take time off work. The benefits are paid directly to you or your beneficiary if you choose Benefits will be yours to spend as you choose.  You could replace lost earnings, pay for medical expenses or even take a holiday to help get better. 

This type of insurance is bought as a rider (also known as an add-on) to a life insurance policy. Cover is usually available to anyone between the ages of 16 and 64 at the date of application.   

Who needs disability insurance? 

You might be thinking securing disability insurance can make you feel peace of mind but might wonder which situation would disability insurance be useful and who really needs it? 

There are four kinds of people who might consider disability coverage on their life insurance plan: 

1. Parents 

If you are a parent of young kids at home and these children are your income dependents, perhaps you want to look into disability cover on your life insurance policy. Although you have an illness or injury, you still need to look after your family. The benefit of disability on your life insurance plan is designed to finance you if you cannot do your job. 

2. People with Repeatedly Injuries 

If you experience injuries such as backaches on an ongoing basis, disability cover on your life insurance policy can be your financial shield when you are not on your job extensively because of health issues.  

3. People who are in a physical demanding role 

 If your job needs plentiful physical labor such as physical therapy and construction, you need to have disability insurance. Coverage of individual disability benefits exceeds your company’s workers’ compensation in case you cannot walk, stand or lift abruptly. With this, you have no need to pay out of your own pocket when you become ill. 

4. The Only Family Breadwinner 

If you are the main financial provider of the family and are unable to work extensively due to becoming ill, disability rider on your life insurance plan exists to fill this certain gap to ensure you can focus on merely your medical recovery which is your priority in this case. 

Our Advice 

International life insurance providers make changes to their policies usually on an annual or bi-annual basis. Sometimes these changes will mean adding or removing benefits or benefit limits the terms and conditions. When your life insurance provider makes a change, check to see how it affects you as it relates to your needs because it may require a switch to another policy.