Disability Insurance: 3 Types Commonly Purchased
Is Disability Insurance Worth It?
When you suffer from an illness or injury, the impact on your life may affect more than just your health. In most cases, medical interruptions affect finances in ways people never expect.
It isn’t just possible medical bills for treatment, hospital stays and health insurance excesses that you have to consider. The financial strain can disturb your whole family’s lifestyle if you become unable to work for even a short period of time.
Don’t put yourself and your loved ones at risk. Be proactive and purchase an insurance policy that will alleviate the financial strain should something like this does occur.
Lifebroker offers the following types of disability insurance:
Income protection insurance offers a monthly payment if you become so sick or injured that you cannot perform the duties required for your occupation. The policy is guaranteed renewable, so the insurer cannot cancel the policy due to a change in your circumstance. Many policies include extra benefits, so when it comes to income protection you really do get what you pay for. That means if you’re considering a basic policy just because it’s cheaper, think about why it might be cheaper. No frills is not always best when it comes to protecting your income and your family.
TPD insurance is often taken as an extension to income protection. To claim on TPD cover you usually have to be off work for at least three to six months due to sickness or injury, and never be able to return to work again. TPD is paid as a lump sum and can supplement your income protection. Your TPD is a good way to cover your debts such as your car loan or mortgage. That way your income protection can be put towards everyday living expenses or even superannuation.
Trauma insurance pays a lump sum if you suffer one of the covered medical conditions. A trauma condition is usually one deemed to be potentially life threatening. There are around 30 medical conditions that are most commonly covered, including things such as heart attack, cancer and stroke. This type of payment is designed to help pay out any debt, use as an investment to provide a yearly dividend, cover medical bills or even take a holiday.