Individual Disability Insurance

by Anna Glendenning | More from this Blogger

07 May 2006 11:33 AM

We have Insurance to protect our assets and manage the risks we face during our ordinary lives. Most of us don't want to sit around and consider the "what if's" of life especially the "what if's" that could be devastating for our families. Insurance choices families have to manage their own risks is one subject the can ruin a conversation. Those who consider these possibilities tend to manage to the bumps in the road life has to offer. Insuring family income in the event of illness or injury is one of those subjects we would rather not deal with, but some time and attention could make a huge difference in the future.

Not all individual disability policies are the same. While the premium you pay is part of the decision, understanding what you want to insure and how you want it to be insured is the most important step. There are a lot of options for this type of insurance and policies may often be tailored to fit the individuals' needs.

I feel that a personal disability insurance policy should have these elements:

• Professionals and executives need to be insured with an own occupation policy and should be specific about the exact nature of the career. Professional Athletes or Brain Surgeons for example. Very few insurance companies offer highly specific coverage, however this insurance is available.
• An insurance company should not be able to terminate coverage or increase premiums. These policies are known as "a guaranteed renewable and non-cancel-able policy."
• The coverage should have provisions for the return to work following an insured illness or injury when a person may still have a loss of income. This is partial or residual coverage and helps the insured return to work at a steady pace.
• The Policy amount of Disability Income Insurance should be enough to replace as much as possible of the lost earnings due to an insured illness or injury.

The best individual disability insurance policies will provide all of the coverage listed above and additional options that a person may want to consider. These policies are often coordinated with other existing sources of disability insurance at the time the policy is purchased. A person's whole situation should be considered and quality insurance will allow a person to choose the type of coverage, as well as, the amount and timing of benefits. Individual disability insurance polices offer long-term protection with a know benefit amount for a level premium and a family in a better situation of risk management.

Related Articles:

• Top 5 Reasons to Never Buy Credit Protection Insurance.

Glossary of Insurance Terms:

A | B | C | D | E | F | G | H | I | J-K | L | M | N | O | P | Q-R | S | T | U-V | W-Z

Families.com Blogs are for informational purposes only. Families.com assumes no responsibility for consumer choices. Consumers are reminded that it is their responsibility to research their choices properly and speak to a certified insurance professional prior to making any decision as important as an insurance purchase.

Learn more about Anna Glendenning

Anna Glendenning is a mother of four. Two biological children grown and out of college, and two siblings and adopted together in 2003. Anna's Personal Website http://www.adoptiveparentsnetwork.

View Full Profile | More from this Blogger