Most people would accept the idea of getting sick or dying but the thought of being disabled would be more difficult to accept. However, the fact is if you are in your early thirties to middle age, the risk of being disabled is much higher than dying. How will your lifestyle or income be affected? These are just some problems that need to be resolved should something unfortunate happen. In the event that it happens, then you might consider the Disability Income Protection(DIP) which pays you a monthly sum should you become too sick or injured to work. Basically, you are insuring your expected future income. With a DIP, the insurance pays you a guaranteed income.
Policy conditions and premiums depend primarily on your occupation. The premiums charged by insurance companies depend on :
1. What level of benefit you want
Such insurance policies will normally allow you to insure up to three quarters of your income. Insurance companies' rationale is the loss of a portion of income will provide an incentive for you to return to work.
2. The benefit period
The term of the policy may vary according to your needs. Of course the longer the period the higher the premium.
3. The waiting period
There ususally exists a waiting period before the policy starts to take effect. This period ranges from two weeks to three months. The longer the waiting period, the lower the premium.
4. The waiver of premium
Should you become disabled, you will not have to pay any more premiums if this clause is included in your policy. This is significant given the probable financial strains. To be entitled to a benefit, the criteria for disability have to be met. Does the policy pay only when you cannot continue your usual work or only if you cannot work at all. The definition will affect your premiums and a more specific definition will cost more than a policy with a general definnition.
Policy conditions and premiums depend primarily on your occupation. The premiums charged by insurance companies depend on :
1. What level of benefit you want
Such insurance policies will normally allow you to insure up to three quarters of your income. Insurance companies' rationale is the loss of a portion of income will provide an incentive for you to return to work.
2. The benefit period
The term of the policy may vary according to your needs. Of course the longer the period the higher the premium.
3. The waiting period
There ususally exists a waiting period before the policy starts to take effect. This period ranges from two weeks to three months. The longer the waiting period, the lower the premium.
4. The waiver of premium
Should you become disabled, you will not have to pay any more premiums if this clause is included in your policy. This is significant given the probable financial strains. To be entitled to a benefit, the criteria for disability have to be met. Does the policy pay only when you cannot continue your usual work or only if you cannot work at all. The definition will affect your premiums and a more specific definition will cost more than a policy with a general definnition.
