Disability insurance, or salary insurance, allows an individual who becomes disabled due to an illness or injury to receive monthly benefits for a certain period of time from his job.

In various states, almost six in ten workers receive disability insurance because of eligibility. The vast majority of them are, however, insured through a group insurance program. The premiums of those are paid by their employers in whole or through installments. In different cases, some people, therefore, take out individual disability insurance to benefit from such protection.

“Unless you have a well-stocked bank account, everyone is eligible to get disability insurance,” says financial planner and financial security advisor Martin Drapeau at a conference.

A woman named, Madeleine Bourque, made a decision of buying disability insurance almost 10 years ago. She fought with major depression for around 8 to 9 months but her insurer paid her the benefits of $1,500 per month. This way she was able to live with her illness without experiencing financial worries. It also allowed her to pay her rent each time with ease.

However, before you buy disability insurance for yourself, there are a few things you need to consider.

How Are You Eligible To Get Insurance?

If you are self-employed, an entrepreneur, or an employee at any organization, you have an opportunity to get disability protection. However, there is no guarantee, as it is also considered that out of all insurance policies and plans, this one is difficult to obtain.

Moreover, before issuing a policy, insurers assess three main things stated below:

  1. State of health of the individual
  2. Age of the individual
  3. Occupation or type of job of the individual

It is important to note that if you have just suffered a heart attack, the insurer may not take the risk of insuring you. Likewise, the older you are, the fewer chances you have to get one. Some of them will outright refuse to insure you.

Also, your premiums will also depend on the trade you practice, because the insurer believes that the risks vary according to the professional classes. For example, a truck driver will pay much more than a lawyer or an accountant.

Furthermore, some insurers even refuse to insure certain trades that do not come under their policy. Also, if you are an individual who got disabled because of an accident or injury caused by someone else, you can contact a Halifax Long Term Disability insurance lawyer who is experienced in their field.

Common Types Of Policies

There are mostly two main categories of standard contracts of a policy

1. The Renewable Guaranteed Policy

The insurer may modify the condition of the contract during the journey, generally once a year based on your change of trades, your health deterioration, income fluctuation, etc. The insurer either increases your premiums or excludes certain unimportant conditions.

2. The Revocation or Revocable Policy

This policy is a bit costly, where the conditions are totally fixed and cannot be modified by the insurer even if your situation changes along the way. This stays generally for approximately 65 years.